Analysys International Says EU's Anti-Dumping Duties Would Have Little Impact on Chinese TV Makers

Analysys International Says EU's Anti-Dumping Duties Would Have Little Impact on Chinese TV Makers

BEIJING, April 4 /Xinhua-PRNewswire/ -- Analysys International, a leading Internet based provider of business information about technology, media and telecom (TMT) industries in China, says, as Chinese television makers have set up plants in EU area and FPD TV becomes mainstream, EU's anti-dumping duties on Chinese CRT televisions would have little impact on Chinese television makers.

News Background

The European Commission said last Friday it wanted to impose 44.6% anti-dumping duties on Chinese CRT televisions after Konka Group Co Ltd, China's third-biggest television maker, refused to allow a visit by EU inspectors.

Quick Analysis

Konka's action actually reflected an allied action by Chinese domestic television makers to target at EU's anti-dumping agreement made in 2002. Pressed by the price fall of flat panel display (FPD) television sets, cathode-ray television (CRT) sets prices have been falling continuously. Under the agreement minimum price with EU, Chinese CRT TVs don't have any competitiveness to develop market in the EU area.

According to statistics from the Customs, China exported 1.45 million TV sets to EU in January 2006, while the total volume exported to the world was 5.86 million. The 400,000 annual export limitation set by the anti-dumping agreement is far from meeting Chinese television makers' needs. Under the agreement, Chinese TV makers don't have profit room.

Since the anti-dumping agreement in 2002, Chinese television makers involved in the agreement have begun to invest or set up plants in EU to avoid the anti-dumping clauses. After several years' development, they have now reached certain production capacity. Plus FPD TV is becoming the market mainstream, Analysys International says the anti-dumping duties on CRT TVs would have little impact on Chinese television makers.

Analysys International says Sichuan Changhong Electric Co Ltd, Konka and TCL King Electrical Appliances are Chinese makers that carried out international strategies in an early stage, and would be impact little by the anti-dumping duties. However, in the short term, their share prices would fall a little. With their major business turning from CRT to FPD TV, the impact to share prices would not last very long.

As part of the exportation would turn to sell domestically or export to other emerging international markets, China's CRT television export to EU will be affected by EU's anti-dumping duties. But FPD TV export to EU will not be influenced.

About Analysys International

Analysys International is the leading Internet based provider of business information about technology, media and telecom (TMT) industries in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations; they also deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the website at http://english.analysys.com.cn/ .

For more information, please contact:

Jessica Wang
Overseas Media Manager
Analysys International
Tel: +86-10-6466-6565 x394
Fax: +86-10-6466-7102/7103
Email: jessica_wang@analysys.com.cn

Source: Analysys International

CONTACT: Jessica Wang of Analysys International, +86-10-6466-6565 x394,
or fax, +86-10-6466-7102/7103, or jessica_wang@analysys.com.cn

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