When we import in China from Cabinet Hardware Chinese Factories we should consider the two sides of price discrimination in trade. We will explain you why.
Price discrimination in China has different forms. One of these forms is the dumping of goods.
When a company discard goods in a foreign economy, it often has “retaliation fees“. Fees are intended to level the playing field for domestic firms that cannot compete with foreign products that have a price lower than the manufacturing cost. However, this trade measure has repercussions.
For example, in the US metallurgical industries 58% of anti-dumping duties are awarded to companies dealing with resources such as iron, steel and more; materials needed to manufacture hardware in China fromCabinet Hardware Chinese Factories. When this trade measure enters into force, there is an effect on all relevant supply chains.
Anti-dumping duties mean that manufacturers have to pay more for materials that are also used by their competitors paying less, which puts them at a disadvantage. However, for some industries, anti-dumping duties promote another industry. For others, these are a necessary means to protect themselves from unfair competition, usually highly subsidized, such as Chinese iron and steel industry from Cabinet Hardware Chinese Factories.