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China Building Ceramics Exports Would Increase The Risk

Guangdong Foreign Economic and Trade Office recently released a survey, as exports soared, competition among enterprises and disorderly, products, lack of substitutability, as well as the rise of trade protectionism, architectural ceramics exports faced an increased risk of trade friction. This will enable the domestic ceramic enterprises overseas market development strategy has been seriously affected. According to the survey, a number of efforts to promote its own brand enterprises in the wake of trade friction, and more ways to move through the OEM for export.

As the largest ceramics production and export base in Guangdong since 2001, suffered a total of 5 cases of trade friction products for the tile to become subject to trade friction, after joining the WTO the largest single product. Tiles in 2001, safeguards the case of the Philippines, India, tile anti-dumping cases in 2005, South Korea tile anti-dumping cases in 2006, Pakistan's anti-dumping cases tile, ceramic tile exports to China have resulted in serious effects. In August 2006 the Turkish tile case of special safeguard measures, the Ministry of Commerce and the Chamber of Commerce Minmetals active representations and consultations, and finally reached with the Turkish ceramic industry associations of non-public settlement agreement, Turkmenistan pledge to withdraw special protection applications, the Chinese side shall be in five years, Turkey's export volume and price of the tiles to take the self-limiting.

At present, the risk for the building ceramics trade frictions remain. In April 2007, Indian Trade and Industry to be their national collective 10 ceramic tile manufacturers to submit on the application of a number of Chinese ceramics companies to start "sunset review" investigation, if he determines that China's ceramic tile business in India constitute dumping, then the current India China ceramic tile company's anti-dumping measures will continue until 2013.

Economic and Trade Office in Guangdong Province survey found that, through a series of trade frictions, the cases in Guangdong enterprises to launch country's export growth was significantly lower than the growth of exports to other markets, have lost their dominant position in these markets.

Ceramic enterprises from Guangdong's exports of these five countries of view, the Philippines exports in 2005 compared to 2002 only increased by 12% in 2006 over the same period the growth rate is also far lower than the average growth rate of exports of ceramic industry; 2006 Guangdong enterprises to huge potential of India's tile exports is still lower than the same period exports to South Korea; Turkey's exports to the special protection shall be placed on file for three years before the ceramic tile enterprises in China exported to Turkey, the average number of years as the standard, the average price per square meter 10 requires the maintenance of dollars.

Trade friction to make a serious impact on low-end products are export products rose significantly. In the previous trade friction, the importers tend to reduce imports of low-end products and increase imports of high-end products. According to customs statistics, China's exports of building ceramics remained strong momentum. January to October 2007 exports of building ceramics in China 1.757 billion U.S. dollars, accounting for 32.60% total ceramic exports, an increase of 28.33 percent, export prices also rose 20.93%.

To South Korea, for example, in 2006 South Korea, after the final ruling tile anti-dumping cases, the Guangdong exports to South Korea glazed and non glazed tile, the average prices rising 19.3% and 12.3%, respectively, higher than the average global rate of increase in export prices. The Philippines, Pakistan, India, export prices of ceramic tile is also a marked increase in the Turkish tile average export price is required to achieve more than 10 U.S. dollars per square meter high.
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