Avoiding anti-dumping duties: How can Chinese companies comply with regulations when “going overseas”?

1. Basic concepts and impacts of anti-dumping duties
   Anti-dumping duties are special tariffs imposed by the government of the importing country on goods that are considered to be exported at a price lower than the normal value. For Chinese companies, anti-dumping investigations and tariffs may have the following effects:

Significant increase in export costs

Sharp decline in market share

Damage to the company’s international reputation

Forced reorganization of the supply chain

II. Common anti-dumping circumvention methods and risks

1. Traditional circumvention methods (high risk)

Third-country re-export trade: transit through a third country that is not taxed

Minor changes to products: Minor adjustments to product features to change tax numbers

Parts export assembly: Export parts are assembled in the importing country

False declaration of origin: Forged product origin certificate

Although these methods may be effective in the short term, the long-term risks are extremely high and may lead to:

High fines and penalties

Companies are blacklisted

Criminal liability

III. Compliance “going overseas” strategy

1. Market diversification strategy

Disperse export markets and reduce dependence on a single market

Explore emerging markets and free trade agreement partner countries

Establish a global supply chain network and flexibly adjust export layout

2. Product upgrade and differentiation

Improve product technology content and added value

Develop unique functions to avoid homogeneous competition

Implement brand strategy and get rid of price war mode

3. Optimize the management of origin

Rationally utilize the preferential treatment of free trade agreements

Establish compliant production bases overseas

Optimize the layout of the global value chain and meet the rules of origin

4. Price strategy adjustment

Establish a scientific export pricing mechanism

Regularly review the relationship between export prices and domestic market prices

Retain complete cost accounting and pricing basis

5. Actively respond to anti-dumping investigations

Establish a professional trade compliance team

Actively cooperate with investigations and provide complete and accurate data

Seek assistance from professional lawyers and accountants

Consider alternatives such as price commitments

IV. Establish a long-term compliance mechanism

Trade compliance system: Establish a sound export compliance management system

Risk warning system: Monitor changes in trade policies in target markets

Professional team building: Cultivate talents familiar with international trade rules

Supply chain audit: Regularly review supply chain compliance

Overseas investment layout: Consider foreign direct investment to avoid trade barriers

V. Success case analysis

Select 1-2 cases where Chinese companies successfully responded to anti-dumping through compliance, and analyze their strategies and results.

Conclusion

Against the backdrop of rising global trade protectionism, Chinese companies must put compliance first when “going overseas”. Through compliance methods such as product upgrades, market diversification, and global value chain optimization, not only can anti-dumping risks be effectively avoided, but also the international competitiveness of enterprises can be enhanced and sustainable development can be achieved. Short-term avoidance behavior may bring temporary benefits, but long-term compliance management is the key to the success of corporate internationalization.