Since the beginning of this year, there have been more reports of anti-dumping of chemical products abroad. Among them, the most difficult to understand is the anti-dumping of saccharin and activated carbon. The international markets of these two products are dominated by Chinese companies, but they are eventually dumped by Chinese companies because of their mutual slaughter and low-price competition. From the perspective of competition, the purpose of the company's low price competition is to expand its market share. But what about products such as saccharin and activated carbon, which are dominated by Chinese companies, even if they account for the market through low-price competition? Can you really make your company get a bigger living space? In my opinion, this may not be the case.
Undoubtedly, resource-based and highly polluting products such as saccharin and activated carbon are still competing at a low price when they are dominated by Chinese companies. The price is huge. One will greatly reduce the value of valuable national resources. Second, it will greatly damage the international image of Chinese companies. Third, they will sacrifice the profits that Chinese companies deserve, and more importantly, sacrifice the health and safety of employees. While we are paying a huge price, the beneficiaries are foreign consumers and foreign downstream industries. Not to mention that the rules of the WTO are binding and that there are barriers to foreign industrial protection. It is difficult for Chinese companies involved in the fight to obtain the desired market share through low-price competition. Judging from the current situation of Chinese companies, no one company is enough to fight other domestic competitors and dominate the international market either in the field of saccharin or activated carbon. Therefore, such low-price competition appears to be harmful and unprofitable. There is no value other than making others get cheap and wielding anti-dumping sticks to hit you. Even if there are companies fighting through the cracks and dominating the international market through huge amounts of money, but waiting until you have to raise prices to obtain monopoly profits, people's antitrust monopoly will wait for you. As a result, your previous costs have been paid in vain.
The current international market is entering a normative competitive situation in which areas of low-price competitive marketing are regarded as illegal and it is impossible to obtain the desired benefits. Therefore, Chinese companies should think twice before making this move in the international market.
Undoubtedly, resource-based and highly polluting products such as saccharin and activated carbon are still competing at a low price when they are dominated by Chinese companies. The price is huge. One will greatly reduce the value of valuable national resources. Second, it will greatly damage the international image of Chinese companies. Third, they will sacrifice the profits that Chinese companies deserve, and more importantly, sacrifice the health and safety of employees. While we are paying a huge price, the beneficiaries are foreign consumers and foreign downstream industries. Not to mention that the rules of the WTO are binding and that there are barriers to foreign industrial protection. It is difficult for Chinese companies involved in the fight to obtain the desired market share through low-price competition. Judging from the current situation of Chinese companies, no one company is enough to fight other domestic competitors and dominate the international market either in the field of saccharin or activated carbon. Therefore, such low-price competition appears to be harmful and unprofitable. There is no value other than making others get cheap and wielding anti-dumping sticks to hit you. Even if there are companies fighting through the cracks and dominating the international market through huge amounts of money, but waiting until you have to raise prices to obtain monopoly profits, people's antitrust monopoly will wait for you. As a result, your previous costs have been paid in vain.
The current international market is entering a normative competitive situation in which areas of low-price competitive marketing are regarded as illegal and it is impossible to obtain the desired benefits. Therefore, Chinese companies should think twice before making this move in the international market.
Wenzhou Howshine Auto&Motor Fitting Co.,Ltd. , https://www.howshine-motor.com