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Fri July 12 2024

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JCB triggers Chinese excavator trade probe

16 Nov 23 The UK Trade Remedies Authority has opened two investigations into imports of excavators from China.

Sany, a privately-owned company, is among Chinese manufacturers to have made progress in the UK excavator market in recent years
Sany, a privately-owned company, is among Chinese manufacturers to have made progress in the UK excavator market in recent years

The investigation is in response to two applications from JCB, one for anti dumping and one for anti subsidy.

The Trade Remedies Authority (TRA) said that it will investigate whether these imports are being dumped or subsidised, and are causing injury to JCB’s business and to UK industry. Where the TRA recommends a remedy is necessary, it will conduct an economic interest test to assess whether the implementation of the remedy is in the UK’s economic interest, it said.

The investigation is particularly focused on imports from China into the UK of tracked excavators of 11 tonnes and above.

TRA chief executive Oliver Griffiths said:  “Our investigations will examine whether excavators from China are being sold into the UK at unfair prices because of dumping and subsidisation – and whether we need remedies to protect the UK economy.”

The TRA is seeking information from all interested parties to establish whether imports of excavators from China are being dumped in the UK at prices below their normal value, or whether they benefit from government subsidies and whether this is causing injury to domestic industries.

JCB says that in recent years state-subsidised Chinese manufacturers have increasingly targeted the UK market with cut-price excavators.

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Among Chinese manufacturers with a UK market presence are Sany, Xuzhou Construction Machinery Group (XCMG) and LiuGong. Sany excavators have been available in the UK for more than a decade. XCMG signed Rygor Plant as its UK dealer for earthmoving machinery in June. And in September LiuGong named Fox Group as its UK dealer.

JCB chief executive Graeme Macdonald said: “We welcome these investigations by the Trade Remedies Authority. There is clear evidence of unfair competitive practices in relation to aggressive, and subsidised, pricing of tracked excavators imported from China.

“We want to see a swift and clear resolution to this urgent matter so that a competitive level playing field is restored for all UK-based manufacturers who invest heavily in the development of world leading products.”

XCMG UK sales director Alan Sams said: “XCMG is the third largest plant machinery manufacturer in the world. We launched in the UK for the first time this year, 2023. We supply reputable high quality, high spec machines and provide dedicated aftersales care.”

Earlier this week we reported that the European Commission had agreed to a request from French manufacturers to investigate dumping allegations regarding Chinese mobile elevating work platforms (MEWPs). [See news report here.]

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