Chinese TV makers moving overseas By Ding Qingfen (China Business Weekly) Updated: 2004-05-24 15:12
Facing the rising challenge of dumping accusations,
Chinese TV set manufacturers are expanding their overseas production bases to
detour trade barriers.
![](xin_35050124152367178399.jpg) A saleswoman waits for customers at a Nanjing
store in this March 3, 2004 file photo.
[newsphoto] |
Shenzhen-based Konka Group Co Ltd - the leading colour TV manufacturer in
China, has taken the recent step of setting up a colour TV manufacturing base in
Mexico, which is expected to go into operation this month.
Until now, Konka has built up five manufacturing bases in China and three
others in India, Indonesia and Mexico.
"Given its well-developed market, good auxiliary equipment and advanced
transportation, Mexico has long been viewed as one of the most important
overseas partners Konka seeks," Chang Qiling, general manager of Konka's brand
centre told China Business Weekly.
"The anti-dump lawsuit brought by the United States last year played a
decisive role, giving the incentive to establish a Mexico-based manufacturing
company," according to Chang.
On April 13, the US Department of Commerce (DOC) released the final ruling on
a dumping accusation against Chinese manufacturers which was launched last May.
Ten major Chinese TV manufacturers, including Sichuan-based Changhong,
Fujian-based Xoceco, Guangdong-based TCL and Konka, were charged a high
anti-dumping tariff, ranging from 4.35 per cent to 24.48 per cent.
"Domestic colour TV makers thus can hardly reap any profit from product
exports to the US market," Chang said.
The United States is the biggest exporter of colour TVs, and has led trends
in the colour TV industry worldwide.
Anti-dumping rules, a trade tool which is often used internationally, has
always been a hard nut for China to crack, despite its rising TV set exports.
Last year, China exported 32.7 million TV sets, a significant rise over the
previous year.
Since the first anti-dumping investigation was carried out by the European
Union (EU) against Chinese TV manufacturers in 1998, China's colour TV sector
has greatly suffered from anti-dumping cases brought by the EU and the United
States.
According to Lu Renbo, a researcher with the Development Research Centre
(DRC) of the State Council, overseas investment is an efficient way of helping
the domestic colour TV industry out of hot water.
Facing the blow, domestic colour TV makers have risen up and taken positive
measures in a bid to enter the world colour TV market.
Besides Konka, in November 2003, TCL succeeded in merging with France-based
Thomson, the world's leading colour TV manufacturer.
TCL can make full use of the manufacturing bases Thomson has set up, one in
Poland, one in Thailand and three in Mexico, expanding its own colour TV
business into these countries.
Early in 1999, TCL set up its first manufacturing base in Viet Nam.
In August 2002, TCL successfully carried out the acquisition of Germany-based
Schneider Electronics AG, the worldwide leader in power and control. TCL has
developed into a colour TV enterprise with annual capacity of 3.5 million units.
Changhong has co-operated with Australian and Indian colour TV manufacturers,
and it has also established research and development institutions in the United
States, Middle East, Russia and Europe.
As for Xoceco, it has adjusted the structure of its colour TV exports to the
US, developing new and advanced products, and attracting the co-operation of
some high-profile US colour TV companies, Sun Guangrong, manager of Xoceco's
brand centre told China Business Weekly.
According to Yang Dongwen, chairman of Guangdong-based Skyworth China,
ignoring the overseas market is the biggest blunder that the domestic colour TV
industry has made.
"Skyworth has always been paying attention to seeking overseas business
partners, and as a matter of fact, we do not worry about the anti-dumping
lawsuits so much." Yang said.
However, Chang said that there are difficulties ahead for Chinese TV
manufacturers who produce overseas, such as increasing costs, language, an
unfamiliar environment and business rules.
"We are full of confidence," Chang said.
"We will go on tapping the overseas market until we obtain the target of
becoming an international colour TV manufacturer." Chang said.
|
![](../../../../image/dot.gif) |
|
![](../../../../image/dot.gif) |
|
|
Today's
Top News |
|
|
|
Top China
News |
![](../../../../image/dot.gif) |
|
![](../../../../image/dot.gif) |
|
|
|
|
|