Vice President Wang Yu Led A Delegation To Indonesia For Consultation On Trade Relief Cases

In September 2019, Indonesia launched three safeguards against fabrics, yarns and curtain products, which involved US $1 billion 378 million in textile exports to Indonesia. It is the largest trade remedy case in recent years in my textile and clothing field. In order to clarify China's position and in-depth exchange of views, Wang Yu, vice chairman of the textile chamber of Commerce, led a delegation to Indonesia on 8-11 December to hold consultations on three safeguards cases. They met with local government agencies, trade associations, Indonesian embassy business offices, Indonesian lawyers and business representatives to carry out negotiations and lobbying work in the industry.


On the afternoon of December 9th, President Wang met with Mr. Mardjoko, chairman of the Indonesian safeguards Committee (KPPI). President Wang hoped that KPPI could conduct investigations and verdict fairly and impartially, and could not levy taxes only for the purpose of trade protection for failing to meet the requirements of legal requirements. By imposing a high temporary tax on tariffs, the Indonesian government has hurt Chinese export enterprises, and also affected the progress of domestic industry and the fair market competition environment in Indonesia. At the same time, the cost of manufacturing enterprises in the lower reaches of Indonesia is increased, especially the living expenses of ordinary consumers in Indonesia. It is hoped that the investigation authorities will be able to collect opinions from all sides, clarify the scope of products, and exclude products from Indonesia's market which are unable to meet the needs of production and can not be produced in the short term. If the Indonesian industry is really under the impact of imports, it can also find a suitable measure to solve this problem, including quantitative restrictions or bilateral regulatory quotas, in order to achieve the goal of protecting Indonesian industry and importing orderly. The textile chamber of commerce is willing to cooperate with the Indonesian government and the Indonesian textile industry association to safeguard the normal import order of Sino Indian textile trade. Chairman Mardjoko said that the investigation was initiated by the Indonesian textile association. The hearing has been held and a provisional tax order has been issued. KPPI will collect the opinions of stakeholders from Indonesia, China and other countries and comply with the WTO rules to make final decisions. Subsequently, I will entrust a Chinese lawyer and an Indonesian lawyer to make legal opinions on the case respectively, and then provide written defense opinions to KPPI.


On the morning of December 9th, President Wang met with API, the Indonesian textile association of three cases, and held talks with Vice President Lin Guomin of the association. President Wang reviewed the cooperation and import and export situation of China's Indonesian textile and garment industry, and pointed out that the textile and garment industry of the two countries had established good cooperative relations after years of trade. After less than 2 months after the case was filed, the Indonesian government suddenly imposed a high provisional tax on Safeguard measures, which had a great impact on bilateral textile trade, and many orders were forced to postpone or cancel. It is hoped that API will comprehensively assess the impact of Taxation and find ways to solve the problems through negotiations between the two countries, and resolve conflicts with cooperation. President Lin introduced President A De of the API's original association. The term is full. The association is electing the new chairman and is expected to be appointed in January next year. As for the reasons for initiating safeguards, President Lin believes that the rapid growth of textile imports in recent years has led to the collapse of domestic textile enterprises, and has applied for safeguards to protect their industries and attract investment to expand exports. API welcomes Chinese enterprises to invest in Indonesia. For the final result of the case, the Indonesian safeguard committee is required to decide according to WTO regulations. The two sides agreed to continue to communicate. I will give written suggestions on product elimination and quantity import management.


On the morning of December 10th, President Wang visited the business office of the Chinese Embassy in Indonesia, reported the case to Wang Liping's Public Health Bureau and made progress in organizing the industry defense. Wang Gong Shen said that the business office supports our industry organizations to safeguard the interests of enterprises, while the business office actively promotes bilateral dialogue and promotes cooperation to reduce Indonesia's trade deficit with China. Next year, 2, the business department will hold an Indonesian investment fair in Jakarta. Welcome the textile business association to understand the Indonesian investment environment and policies.


On the afternoon of December 10th, President Wang and his party met with Chinese lawyers and Indonesian lawyers to discuss the details of the case, and discussed in detail the product tax exclusion number, the output data of the two countries produced by the complainant, the difficulties and key points of the defense.


Vice President Wang Yu heard Indonesian importers introducing cases


On the afternoon of December 10th, I will meet with Chinese lawyers and Indonesian lawyers to meet with Indonesian Importers' representatives to understand Indonesia's import textile policy, Indonesia's domestic textile production and the impact of provisional safeguard tax on Indonesian manufacturing enterprises, and prepare more detailed information for the defense.


I will meet with the case complainants and investigation bodies, understand the opinions of the other side, state our legal opinions and suggestions, and fully communicate with Chinese lawyers and Indonesian lawyers. After that, we will submit written defense opinions on the contents of the complaint.