Fastener industry joint operations to formulate "code of conduct" to limit vicious competition
| 2014-03-17

More than 100 fastener companies in Haiyan County will discuss and vote on the internal industry code of conduct (discussion draft) that local companies promise "lowest price", and launch a counterattack against the EU anti-dumping incident. This is the first joint operation of the Chinese fastener industry. Haiyan, which takes fasteners as its traditional advantageous industry, now has more than 1,500 standard fasteners and related enterprises. Due to the fierce competition among enterprises, the product prices are too low, which has become an important reason for the EU's dumping investigation. Xu Deren, vice president of the Haiyan Fasteners Chamber of Commerce, said: "If a company lowers the price by itself, although it can get a large number of orders, it will cause losses to other companies and even affect the interests of the entire Haiyan fastener industry." Haiyan Daewoo Standard Parts Co., Ltd. General Manager Lu Qinbiao said with deep feeling that in 2004, the Canadian Border Services Agency filed an anti-dumping investigation on carbon steel and stainless steel fasteners exported from China, involving four companies including Haiyan Daewoo Standard Parts Co., Ltd. For the first time since the organization encountered an anti-dumping investigation. Although through the investigation, the four enterprises in Haiyan were all near misses, but the experience and lessons are profound. Therefore, it is necessary to formulate the "lowest price" internal industry code of conduct. Haiyan fasteners must lead by continuously improving product quality. market, rather than occupying the market through low-price competition.


Chen Xiaobo, the marketing manager of Zhejiang (International) Fastener Hardware City, was overjoyed when he heard that he would participate in the discussion of the "Code of Conduct". He said that in the past, he responded passively to foreign anti-dumping investigations on fasteners. This time Haiyan Fasteners responded passively. Enterprises have shifted from passive response to active response, which is a good start. He also said that in the future, more than 2,000 fastener companies from Ningbo, Wenzhou and other places will settle in Haiyan. If they blindly compete for prices, it will form a chaotic situation in the fastener industry. Therefore, the formulation of such an internal industry standard not only ensures the quality of fasteners exported, but also has a system guarantee for Haiyan's fasteners to go to the world.


It is understood that after the "Code of Conduct" was promulgated, all local fastener products were taken as a unit by a single manufacturer, and the manufacturer announced the "lowest price" of certain types of products on the industry website at regular intervals. The Haiyan Fasteners Chamber of Commerce will invite relevant experts to comprehensively calculate the raw material cost and transportation cost of the company to see if it is reasonable, so as to judge the rationality of the price. If the same product, the same cost, and a company's price is lower than another company's price, other companies will be able to report in a timely manner in various ways. The Chamber of Commerce will "link" with the two guarantee companies to limit vicious competition and ensure the commercial interests of members.

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