ITC FINDS CHINESE TV DUMPING ‘MATERIALLY INJURED’ U.S. INDUSTRY

The U.S. International Trade Commission (ITC) found that direct-view color TVs imported from China “materially injured” the U.S. set manufacturing industry, setting the stage for duties ranging 4-24%. The 5-0 vote Fri., which sends the case back to the Commerce Dept. for final action May 26, surprised some observers, who had expected Comr. Stephen Koplan to vote against imposing the duties. Chmn. Deanna Okun abstained.

The duties, which will take effect in June, will apply to sets imported to the U.S. by a cadre of Chinese manufacturers including Sichuan Changhong (24.38% duty), Xiamen Overseas (4.35%), Shenzhen Konka (11.36%) and TCL (22.36%). Commerce softened the proposed duties in April from an earlier range of 40-70% that was established after Five Rivers Electronics Manufacturing and labor unions representing workers at Sanyo and Toshiba plants filed a complaint last May.

The practical impact of the duties may be minimal, industry observers said, although some pointed to the antidumping duties imposed on Japanese suppliers in 1970s as a possible guidepost. Those duties pushed Japanese manufacturers to open TV plants in the U.S. Unlike in the 1970s, however, CRT-based TVs face a new competitor in flat panel displays, which won’t be subject the duties being imposed on imports from China. The decision also could mean added business for Five Rivers, which has had discussions on possible assembly agreements with Chinese and Taiwanese suppliers, CEO Thomas Hopson said. U.S. manufacturers shipped 3.8 million TVs in 2003 valued at $1.9 billion, while 1.8 million units ($318 million) were imported from China, the ITC said.

“This gives us a little time to fix our business,” Hopson said. “Hopefully what it does is create a level playing field for us to compete on. I'm sure Chinese manufacturers are going to come one way or another, but don’t let it be at the expense of American jobs.” Changhong, Konka and TCL officials weren’t available for comment. Apex Sales Vp Gary Bennett, whose company sources TVs from Changhong, didn’t return a phone call seeking comment.

Chinese manufacturers have several options to avoid paying the duties, industry observers said. TV manufacturers could move production to another Asian country like Malaysia, Singapore or Taiwan that aren’t covered by the dumping order. Or TVs could be imported, stripped of their tuners, as monitors, an industry observer said. Most U.S. households receive TV signals via cable or satellite set-top boxes already equipped with a tuner. “If you leave out the tuner, it’s not a TV receiver and it’s not subject to any dumping order,” a CE official said. “The only thing you would have to do is educate the consumer.”