Russia Initiates China Bearing Dumping Investigation

The Ministry of Economic Development and Trade of the Russian Federation announced it has launched an investigation into alleged dumping of bearings into the country from China. Dumping is loosely defined as the sale of a product into a market at less than the true cost of production. Dumping is an illegal and predatory market practice; countries are quick to respond as dumping can quickly damage a domestic industry. Reportedly, Chinese ball and roller bearing sales from 2002 through 2006 are being reviewed. Russian bearing manufacturers represented in the complaint are VPZ-15 Volzhsky Bearing Plant, Kursk Bearing Plant, Rostov Tenth Bearing Plant, SPZ Saratov Bearing Plant, SPZ-4 Vologda Bearing Plant, and Roltom / Tomsk Bearing SBP-5. Together, the manufacturers accounted for more than 50% of Russia's total bearing production between 2002 and 2005. The complaint as filed alleges, "dumping of bearing originating in China, material loss for a sector of the Russian economy, and a causal connection." The Ministry has an open comment period for interested (financially involved) parties for the next 150 days, and has 60 days to appeal for and schedule open hearings.