Zhang Yi, a lawyer from Gaopeng Institute, successfully responded to the Indian countervailing case for the Chinese viscose filament industry

2021 08/14

On August 9,2021,the Ministry of Commerce and Industry of India announced the final determination of countervailing measures against Chinese viscose filament.In this case,our senior partner,Zhang Yi,the lawyer's trade team,represented the China Chamber of Commerce for the Import and Export of Textiles and the three largest export enterprises in China(Jilin Chemical Fiber,Xinxiang Chemical Fiber,and Yibin Silia Group)in the overall industry harmless defense.In the final determination,our firm successfully terminated the case with a non damaging countervailing defense and no taxation,successfully maintaining and opening up the world's most important export market of over 1 billion yuan per year for the entire viscose filament industry in China.

On July 20,2020,upon the application of the Artificial Fiber Industry Association of India(AMFII),the Ministry of Commerce and Industry of India officially launched a countervailing investigation against viscose filaments imported from China.According to Chinese customs data,during the countervailing investigation period,China exported US$156 million of Indian products involved,a year-on-year increase of 48.22%.The export enterprises involved are mainly concentrated in Jilin,Henan,and Sichuan provinces.Under the leadership of the Trade Remedy Bureau of the Ministry of Commerce of China,our firm participated in the response coordination meeting held by the China Textile Chamber of Commerce in July 2020,and submitted a letter of intent to respond to the lawsuit on behalf of the Chamber of Commerce and registered as a stakeholder on August 5.In October,our lawyers distributed a questionnaire to responding enterprises to collect damage defense materials and drafted detailed defense opinions.At the same time,they mobilized and organized 32 importers and downstream users,as well as 5 associations,to submit defense opinions to the Ministry of Commerce and Industry of India in cooperation with Indian lawyers.On June 4,2021,the Ministry of Commerce and Industry of India held a hearing on the case.Our lawyers and Indian partner lawyers mobilized and coordinated Indian importers,downstream users,and relevant associations to participate in the hearing through phone calls and online meetings,and submitted written comments to the Ministry of Commerce and Industry of India after the hearing,opposing the imposition of countervailing duties.Through various channels,our Indian partner lawyers have learned that the Indian government originally planned to impose taxes on the final ruling,but after the disclosure of facts before the final ruling was announced at the end of July this year,including our side and downstream parties in India,actively pressed and vigorously defended the Indian investigation authorities,ultimately forcing the Ministry of Commerce and Industry of India to change its decision on taxation.

In 2018,our lawyer Zhang Yi's trade team successfully conducted an industry friendly anti-dumping defense on behalf of the Chinese viscose filament industry,canceling the high anti-dumping duties imposed by the Indian government on the entire Chinese industry for 13 years."The Indian viscose filament industry was unwilling to fail,and in 2020,it initiated a countervailing investigation against China's viscose filament,with the intention of recovering the defeat and continuing to hinder the export of China's viscose filament industry to India.".This case not only completely ended the attempt of the Indian local industry to establish trade barriers against Chinese enterprises,but also was a typical case in which the Chinese textile industry has achieved complete success in responding to foreign anti-dumping and countervailing trade protection cases in recent years.

(This article is translated by software translator for reference only.)