Study to examine dumping by Chinese firms

Chinese firms charged with dumping auto components.

The government has agreed to institute a study to examine whether Chinese companies were dumping automotive components into India, according to Automotive Component Manufacturers' Association.

According to ACMA president A K Taneja, the participation of the government in such a study would add credibility to the association's charge of dumping from China.

He said that wheel rim and steering suspension system were two such parts whose imports from China have surged in the last few months.

While imports from China have been strong since 2002-03, a marked shift in the bilateral trade, favouring China, had started emerging in 2005.

In 2003-04, while China's imports from India were Rs 107 crore, their exports into India were a notch lower at Rs 91 crore. This balance of trade shifted in the previous financial year, where exports to China from India was only Rs 88.45 crore, while imports from China shot up to Rs 140 crore.

Taneja pointed out that between January and August 2005, the tilt was sharper with a trade balance in favour of China at Rs 98 crore, with imports from China at Rs 189 crore. "Given the changes we are noticing, imports from China could be Rs 1,000 crore next year," he said.

It is also learnt that leading commercial vehicle producers and two-wheeler makers in India have already placed a large order for imports from China.

Interestingly, the tenure of these contracts come with a very short duration of three months, allowing scope for price revision by the Chinese suppliers at short notice. The norm in the industry so far has been in the range of one to three years.