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Chinese companies will continue to appeal against the Indian Government's ruling that silk exports have been dumped in India.

So said the China Chamber of Commerce for the Import and Export of Textiles yesterday on its website.

The Indian Government claimed late last month that Chinese silk fabrics were sold to India at prices below the normal value, damaging the Indian industry.

The association will arrange for experts and firms to evaluate the ruling to decide how to respond, said an official with the chamber of commerce who declined to give his name.

The Indian authorities have set provisional tariffs ranging from 57 percent to 108 percent for Chinese firms. "The duty rates are higher than expected," the source said. He said the chamber of commerce would continue its appeal but declined to disclose details.

Selling at prices less than the normal value and damage to the industry are two elements in deciding whether dumping has occurred and if so, what measures to take against it.

As India has refused to give market economy treatment to any of the Chinese firms involved, production costs offered by Chinese companies are not taken into account; instead the costs of a third country are used to calculate the "normal value."

Therefore, Chinese firms hope they can prove their exports do not hurt Indian firms.

The case, which began around a year ago, involves 100 Chinese exporters and products worth US$180 million. The firms include about 30 leading silk exporters which account for at least 80 percent of China's silk fabric exports to India.

According to the most recent World Trade Organization (WTO) secretariat report on anti-dumping investigations and anti-dumping measures which came out last year, China is the most frequent subject of new investigations. There were 33 cases directed at its exports from July to December 2005, up from 24 during in the same period of 2004.

Investigations into alleged dumping by China are spreading from developed countries to developing countries, said Mei Xinyu, a trade researcher with the Chinese Academy of International Trade and Economic Co-operation, a think-tank under the commerce ministry.

(China Daily May 11, 2006)