Home > Uncategorized > In Curbing Anti-Dumping, Chinese Companies Sued For Monopoly in US.

In Curbing Anti-Dumping, Chinese Companies Sued For Monopoly in US.

http://www.reuters.com/article/2011/03/11/us-china-vitaminc-idUSTRE72A4XH20110311

Interesting case, but here is the jist of the lawsuit.

2 US plaintiffs, buyers of Vitamins, sued Chinese Vitamin makers, accusing them of fixing production quantity and fixing prices as a cartel.

Chinese companies defendants say, they were ORDERED to do so by the Chinese government.  The Chinese government says, they were doing it to prevent US anti-dumping charges from US government.  US government refused to comment.

“According to the brief submitted by the Ministry of Commerce, the action was taken in order to mitigate the exposure Chinese companies faced in potential antidumping investigations from other countries and to ensure China’s orderly transition to a market-driven economy.”

LOL.  It’s comical.

If the Chinese companies go into US, they get investigated for anti-dumping, and yet, when they coordinate their production to limit “dumping” in US, they get sued for fixing prices.

You know, that’s an excellent legal strategy for Chinese government to learn:

In the future, Investigate foreign companies that enter China for anti-dumping, and then when they slow down their production, investigate them for fixing prices.  (and in the mean time, that should give local Chinese companies time to catch up, take over the market, while the lawsuits/investigations chase the foreign companies out of the Chinese market).

Yes, that’s so much easier than “Forced Technology Transfer”.  (All the while making the foreign countries look like the bad guys).

Some would call that basic nationalistic protectionism, but oh well.

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  1. zack
    March 11th, 2011 at 15:17 | #1

    Chinese companies are damned if they do, damned if they don’t when it comes to the american market;
    like the whole huawei thing; perhaps beijing should make life really hard for intel and hewlett packard citing ‘national security concerns’ once china’s domestic semi-conductor sector comes online.

    simple tit-for tat politics. that’s how you hammer home the message to those Westerners

  2. xian
    March 12th, 2011 at 00:47 | #2

    Protectionism is normal, free trade is idealistic weakness.

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