8/4/2009
HEADLINES
PERSPECTIVE: Chinese Fastener Makers Worry Over U.S. Tariff Potential
Stung by European Union tariffs, fastener makers in China are eyeing offshore production to circumvent the 85% duties, Chinese Enterprise News reports.
In addition to the EU tariffs, Chinese fastener producers are feeling pressure from companies in Russia that are calling for a tariff investigation as well.
Until the tariffs were enacted at the beginning of 2009, fastener exports to the EU consumed about one-third of fastener exports from China.
Chinese producers reportedly are worried that if Russia successful applies duties to Chinese fastener exports, the U.S. may follow suit.
“Once these vicious effects occur, Chinese fastener industry will be highly impacted since as much as 40% of Chinese fasteners are exported to America,” Chinese Enterprise News reports.
It’s important to note that there are no U.S. tariffs in the works.
Still, some Chinese fastener companies, including Gem-Year Industrial Co., reportedly have turned their attention to the domestic Chinese market to reduce their dependence on export markets. Such actions include pursuing the domestic MRO market to make up for plummeting export sales.
Other Chinese companies are looking into setting up factories in Malaysia, Thailand and Cambodia to circumvent EU tariffs, Chinese Enterprise News reports. ©2009 GlobalFastenerNews.com
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