Chinese manufacturers stand accused

Chinese excavator manufacturers stand accused of excavator dumping – selling machines at a significantly reduced price to gain a foothold or to secure market share to the detriment of incumbent manufacturer.

In response to complaints made by British manufacturer JCB, the Trade Remedies Authority has opened two new investigations into the import of excavators from China.

The TRA will investigate whether these imports are being dumped or subsidised and are causing injury to JCB’s business and to UK industry.

“Our investigations will examine whether excavators from China are being sold into the UK at unfair prices because of dumping and subsidisation, and whether we need remedies to protect the UK economy,” says Oliver Griffiths, TRA Chief Executive.

JCB has welcomed that probe into the alleged dumping. “There is clear evidence of unfair competitive practices in relation to aggressive and subsidised pricing of tract excavators imported from China,” says JCB CEO Graham Macdonald. “We want to see a swift and clear resolution to this urgent matter so that a competitive level playing field is restored for all UK based manufacturers who invest heavily in the development of world leading products. “

Those of a certain age may recall similar accusations being levelled against Japanese excavator manufacturers in the mid to late 1980s.

At that time, anti-dumping duties of between 2.9 and 31.9 percent were levied against five Japanese manufacturers of excavators in the six to 35 tonne weight class: Kobelco, Hitachi, Komatsu, Mitsubishi and Japan Steel Works.