Some Chinese mfrs. say Americans reluctant to buy
By Thomas Russell -- Furniture Today, March 15, 2004
Kuala Lumpur, Malaysia — Kuala Lumpur, Malaysia— Several executives declined to comment, but some Chinese furniture companies showing at Asian furniture fairs this month said the threat of duties on bedroom furniture shipped to the United States had some American retailers and importers holding off on orders.
Manufacturers said the fairs here and in Singapore were valuable to let them meet buyers from other countries, who wouldn't be affected by the proposed antidumping duties.
Several Chinese companies questioned by Furniture/Today didn't want to discuss the issue publicly.
Among those who would was NobleGlobal Classical Home Furniture, a producer of bedroom furniture whose parent company, GlobalRich, has factories in Dongguan and Shenzhen, China. It was showing for the first time at the Malaysian fair and hoped to meet American importers looking for sourcing partners.
But on the first two days of the show, American buyer traffic was slim. Some customers are apparently waiting for news on whether there will be duties on Chinese-made wood bedroom furniture, said Tom Ji, a company managing director.
"It's unfair for China," Ji said. "Dumping means we sell below cost. Nobody wants to do that. Everybody wants to make money."
The antidumping petition, led by a coalition of U.S. manufacturers, alleges that China is selling bedroom furniture on the U.S. market below its fair cost of production. The petitioners want the U.S. government to impose duties, and a preliminary decision could come as early as late April.
Ji said the increasing dominance of Chinese case goods manufacturing essentially started when U.S. companies began sourcing product there. The United States benefits from the increasingly global nature of the furniture business, he said.
Fortunately for his company, non-U.S. buyers — including some from the Mideast — stopped by his booth. Ji expects some of those orders to help offset a temporary loss of U.S. business.
Buyer traffic from the Mideast, Europe, Australia and Asia explained the strong Chinese manufacturing presence at both the Malaysian International Furniture Fair and the International Furniture Fair Singapore. About 45 Chinese companies showed in Malaysia, nearly 12% of the total of 380 exhibitors, and the IFFS attracted about 60 Chinese furniture and accessories companies, just over 13% of the 450 exhibitors.
Daniel Liu Hai, a sales representative for China's Taizhou Jiyuan Home Furnishings, said bedrooms sold to the Unites States represent about half of his company's business. But like Ji, he said buyers from other countries would help stem the potential loss of business resulting from any antidumping duties.
"We will make a contact with another (buyer) in another country," he said. "We have lots of relationships built up in Italy, the Middle East and Malaysia."
Singapore-based Koda Furniture specializes in casual dining, but also sells some Chinese-made bedrooms to the Unites States. It had strong traffic at both MIFF and IFFS and expected the petition would have only a minimal effect on business.
"Our existing customers are concerned about it and are looking for double sourcing," said Ernie Koh, senior vice president. But he said Koda can shift bedroom production to other plants if necessary.
"It's more of an opportunity than a threat for us," he said.
In the long term, however, an antidumping action could drive a wedge between the United States and China, which until now have been partners in the furniture trade.
"It will become a very political issue that will be very sensitive," Koh said. "The Chinese will retaliate and then it will be very ugly."
He also believes the effort will do little to restore U.S. furniture manufacturing to its former glory, and that the United States should focus on what it does best, which is marketing and branding.
