Joint operation of the fastener industry and the formulation of "Code of Conduct" to limit vicious competition

More than 100 fastener companies in Haiyan County will discuss and vote on the “lowest price” internal industry code of conduct (discussion draft) for local companies, and launch counterattacks on anti-dumping incidents in the EU. This is the first joint operation in China’s fastener industry.

Haiyan, which uses fasteners as its traditional advantageous industry, now has more than 1,500 standard fasteners and related companies. Due to fierce competition between companies, product prices are too low, which has become an important reason for this dumping investigation by the EU. Xu Deren, vice president of the Haiyan Fasteners Merchants Association, said: "If a company is to lower prices 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 Dawoo Standard Parts Co., Ltd. General Manager Lu Qinbiao said with deep feeling that in 2004, the Canadian Border Service Agency initiated an anti-dumping investigation of carbon steel and stainless steel fasteners exported from China, involving four companies, including Haiyan Dawoo Standard Parts Co., Ltd., which is a sea salt enterprise joining the WTO. For the first time since the organization encountered anti-dumping investigations. Although through the investigation, the four companies of Haiyan are in shock, but the lessons are profound. Therefore, it is necessary to establish the “lowest price” internal industry code of conduct. Haiyan fasteners should be led by the continuously improved product quality. Market, rather than occupying the market through low-price competition.

I heard that he will participate in the discussion of the "Code of Conduct." Chen Xiaobo, Marketing Manager of Fastener Hardware City, Zhejiang (International), said with great joy that he responded to anti-dumping investigations of foreign fasteners that were passive responders. This time, Haiyan Fasteners Enterprises from passive responding to active response, this is a good start. He also said that in the future there will be more than 2,000 fastener companies in Ningbo, Wenzhou and other places settled in Haiyan, if blindly fight prices, it will form a chaotic situation in the fastener industry. Therefore, the development of such an internal industry standard not only guarantees the quality of the fasteners' export products, but also the system guarantee of Haiyan fasteners to the world.

It is understood that after the “Code of Conduct” is issued, all local fastener products will be produced in a single production enterprise. From time to time, the manufacturer will publish the “lowest price” of certain products on the industry website. The Haiyan Fasteners Merchants Association will invite relevant experts to make comprehensive calculations on the raw material costs and transportation costs 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 one company is lower than the other company, other companies will be able to report in a timely manner through various means. The Chamber of Commerce will “link” with the two guarantee companies to restrict vicious competition and ensure the commercial interests of the members.