Flooring companies regain their export markets with less than enough energy

The U.S. Federal Circuit Court of Appeals has recently requested the U.S. Department of Commerce to suspend the news of imposing temporary anti-subsidy duties on products imported from China, so that the floor export companies in trouble are much warmer.

"If it can be implemented, it will greatly help China's floor companies to re-export to the United States." Qin Zhanxue, vice president of the China Building Materials Distribution Association, told the "First Financial Daily".

Flooring companies took back the export market On October 21 last year, the American Flooring Enterprise Alliance filed an application with the U.S. government requesting anti-dumping and anti-subsidy investigations on imported composite flooring from China. The cause is that the US International Trade Commission found in December last year that imported products from China increased by 17% in the first nine months of last year, and the share of the United States market increased from 43% a year ago to 47%. According to the China Forest Products Industry Association, the prosecution is a mainstream American flooring company that has many business contacts with Chinese flooring companies, alleging that the dumping margin of Chinese composite flooring is as high as 242.2%.

In October this year, according to the final ruling of the US Department of Commerce, a countervailing duty rate of 0 to 26.73% and an anti-dumping rate of 0 to 58.84% were imposed on Chinese products involving the United States.

This has had a huge impact on Chinese flooring companies. In fact, the export market began to shrink dramatically since the 2008 financial crisis. “This year, the export of the flooring industry is only slightly better than in 2009.” Tang Zhaoqun, general manager of Chaoshang Mall, which mainly engages in flooring sales, told the newspaper.

This year's "double opposition" has further increased the pressure on China's floor exports. Song Yaming, Secretary General of the Nanxun District Flooring Association in Huzhou City, Zhejiang Province, said in an interview with this newspaper that the United States’ “double opposition” has hit the US market for floor companies in Nanxun area very hard. Nanxun area is a relatively concentrated area of ​​flooring companies. There are more than 10 floor companies and 6 companies are “double-anti”. Nanxun floor companies’ exports to the US market account for 1/3 of total exports.

A responsible person of the secretary office of the company listed in Dalian Branch Wood Flooring Co., Ltd. (002354.SZ) told the newspaper that Zhejiang's flooring companies had a large proportion of exporters, and the company had increased its domestic sales in recent years because of its focus on the domestic market. So the impact is a lot smaller.

After the United States implemented a "double reaction" against Chinese flooring companies, Chinese flooring companies turned to the domestic market and other overseas markets. However, due to the huge impact of real estate regulation and control in the domestic market this year, the sales of flooring companies have generally declined sharply this year, and many small-sized floor factories have even closed down.

Qin Zhanxue believes that this incident reflects that Chinese companies should actively pick up legal weapons and join forces to actively respond. "We also wanted to join together the floor companies to cope, but some companies, especially private enterprises, are reluctant to pay. They would rather move to other markets, but opening up other markets will also require a lot of costs."