Chinese auto glass companies that export to Brazil are much more fortunate than Chinese tire companies that are blocked by high punitive tariffs.

Brazil recently terminated its anti-dumping investigation against China's auto glass. It was due to the failure of the Brazilian investigation authorities to verify the relevant companies. The "First Financial Daily" reporter learned today (August 31) from the lawyers of the Chinese auto glass company who participated in the lawsuit.

The lawsuit was only two months from the initiation of the investigation to the termination. The Trade Relief and Investigation Bureau of the Ministry of Commerce of China issued a notice on July 9, 2015. On June 29, the Trade Protection Bureau of the Ministry of Development and Industry of Brazil (DECOM, hereinafter referred to as the “Brazilian Ministry of Foreign Trade” issued the 42nd Order of 2015, and decided to The anti-dumping investigation was initiated by the automobile glass imported from China (the products of the products in the south of the city were: 7007.11.00, 7007.19.00, 7007.21.00, 7007.29.00 and 8708.29.99). The dumping investigation period of this case was from January to December 2014.

The "First Financial Daily" reporter learned that during this investigation, the amount of heat-treated or laminated safety glass for Chinese exports to Brazil was $108 million. In the announcement issued by the Brazilian Ministry of Foreign Trade, it was pointed out that China’s export of automobile glass to Brazil was 356.2%. This means that the Chinese auto glass companies involved may face a high anti-dumping penalty rate and lose the Brazilian market.

However, this was only a false alarm. The application for the lawsuit filed by the plaintiff of the lawsuit could not stand the verification, and Chinese glass manufacturers such as Fuyao Glass and Brazilian importers including BMW actively responded during the investigation. The defense finally ended the anti-dumping lawsuit. However, the above-mentioned Chinese lawyers said that it is not excluded that Brazilian companies will make a comeback and the possibility of filing a lawsuit later. China should not take it lightly to export auto glass companies in Brazil.

At present, the Brazilian auto industry is in a downturn. Following the poor performance in the first half of this year, the Brazilian auto market continued to experience double-digit declines in production and sales in July, resulting in a further increase in the auto industry crisis, which accounts for one-fifth of Brazil's industrial output. The decline in production and sales has forced automakers to continue to adjust their production plans. In this case, it is relatively easy to trigger international trade frictions to protect the development of local industries and related enterprises.

According to the latest data released by the Brazilian Automobile Manufacturers Association (Anfavea), in July this year, Brazilian car sales decreased by 22.8% year-on-year to 227,600 units; the chain increased by 7.1%, and the daily average was less than 10,000 units, since July 2007. The lowest record in history. From January to July this year, the cumulative sales of Brazilian cars was 1.5 million units, down 21% year-on-year. The growing interest rates, unemployment and inflation in Brazil have shaken consumer confidence and suppressed their demand for new cars.

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