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The U.S.has hacked Chinese companies again!

It has been three years since the US-China trade war provoked by the United States.In the process,it has used many unreasonable reasons to hit many outstanding Chinese companies,such as Huawei,DJI,Hikvision,SMIC,and SenseTime.Technology,China Shipbuilding Corporation...

In order to slow down China's development speed,the"lighthouse country"can be described as painstakingly.

However,this time it was not the high-tech that people had thought of being attacked.It was the Chinese mattress company that was injured.

What's wrong with the United States with a small mattress?

1

The unreasonable America is playing hooligans again!

The reason why the United States has black hands on Chinese mattresses is simple.

China's mattresses are too competitive and threaten local American companies.

The U.S.Department of Commerce stated in the announcement that in 2017,the U.S.imported 4.6 million mattresses from China,valued at 436.5 million U.S.dollars;in 2016,the data was 1.82 million,valued at 172.1 million U.S.dollars.

In just one year,the number and total value of mattresses exported from China to the United States have doubled by 2.5 times!

Since then,the United States has focused on Chinese mattresses.

Therefore,in 2018,the US Department of Commerce announced that it initiated an anti-dumping investigation on mattresses imported from China.

One year later,on May 29(US time),the US Department of Commerce announced that due to"low-price dumping",anti-dumping duties from 38%to a maximum of 1731%will be imposed on mattresses made in China.

But Chinese companies did not sit still.

Since the United States began anti-dumping/countervailing,some Chinese companies have begun to invest and build factories in Thailand,Vietnam and other places to avoid high anti-dumping duties.

For example,Xilinmen invests in building a base in Thailand,Dream Lily has a layout in Thailand,Serbia and other places,and Gujia Home chooses Vietnam,Malaysia and other places.

But the good times didn't last long.The United States quickly noticed a surge in mattresses from Vietnam,Malaysia and other places,and realized that the power behind it was Chinese companies.

Therefore,in the affirmative final ruling made by the United States against Chinese mattresses on March 19 this year,the United States used anti-subsidy/anti-dumping tactics in seven countries including Cambodia,Malaysia,Serbia,and Thailand.Anti-dumping tax rates Up to 763.28%!

The purpose is obvious:to block all possible roads for Chinese mattress exports to Europe and the United States.

Needless to say,in order to protect its own enterprises,the United States has been like a hooligan with no principles and unscrupulous means.

Why do you say that?

The United States will investigate Chinese mattresses because of a petition by American mattress manufacturers.In March last year,they even submitted a 3,000-page petition claiming that Chinese mattress companies were dumping at low prices,causing them substantial harm.

It is not difficult to see that the core question is:Are there any low-price dumping behaviors among Chinese mattress companies?

Let's talk about the conclusion first,no.

Those petitioning companies have repeatedly accused China of dumping mattresses at low prices,but the face is that the"American Mattress Alliance"(American Mattress Alliance,referred to as AMA)clearly pointed out that petitioning companies can actually make mattresses at lower prices than imported mattresses.For example,one of the companies called Corsicana,the wholesale price of its 12-foot mattresses is lower than the landing cost of imported mattresses.

What does this show?There are only two possibilities.

First,those petitioning companies have the ability but choose not to produce lower-cost mattresses in order to make high profits;second,they are cheaper,but they still cannot sell Chinese mattresses.

In any case,they all need to clean up the cheap and good-quality Chinese mattresses.

In addition to the cost,the petitioning company also mentioned:Because of the dumping of mattresses in China,more than 40 mattress manufacturers in the United States have closed down,causing a lot of unemployment.

However,the real situation is still slapped!

In reports in the US media,almost none of them believed that the collapse of American mattress manufacturers was related to so-called dumping.The culprit was actually various domestic mergers,acquisitions,and upgrades in the United States.

At the same time,it also pointed out:mergers and acquisitions,acquisitions and other activities have eliminated 1,278 jobs,but also created 1,215 new jobs.In other words,the United States lost only 63 jobs.

Even so,it is shameless for those petitioning companies to insist that Chinese mattresses have caused a large number of Americans to lose their jobs.

The most shameless is the timing of their petition.

At the time when they submitted their 3,000-page petition,the US epidemic had broken out.Hospital beds were in urgent need of mattresses,and imported mattresses accounted for a large proportion,but they were indifferent.

An American mattress importer said:Imported mattresses in his warehouse can be delivered within two days,but those American manufacturers,which will take weeks or even months,will definitely hinder the United States in fighting the epidemic.

Is it possible that the US Department of Commerce is not clear about all the above situations?

Of course it is impossible.Just to protect local brands,they need excuses,even if they are crappy excuses.

Therefore,many American media and industry professionals can't stand the 3,000-page petition.The"American Mattress Alliance"concluded:If these petition companies really have any losses,it is not caused by imported mattresses,but by their own efforts,such as ignoring e-commerce and over-relying on the single market.

In the final analysis,it is still because American mattresses cannot beat the high-quality and cheap Chinese mattresses.Otherwise,why don't they want to go international and become bigger and stronger like Chinese mattresses?

Products are slinged by Chinese mattresses,so they can only be nested in the United States,relying on government protection.

2

Can those targeted mattress companies still survive?

U.S.mattress manufacturers and the U.S.government are playing rogues,and the impact on Chinese mattress companies is inevitable.

As early as 2019,according to the furniture industry business magazine"Furniture Today",some mattress export companies could not spend more energy to newly develop Italian and Dutch customers in the European market,but there were only more than 100 trial orders."Our Korean customers didn't do it before,but now we can't do anything!We can only cultivate it slowly."

These SMEs are the most affected groups.Most of them do not have the strength to build factories overseas like Xilinmen,Mengbaihe,and Gujiajia.It is difficult to avoid anti-dumping duties and also difficult to open up new markets.After export to Europe and the United States is blocked,business development will be difficult.

On the other hand,China's large mattress companies are affected to varying degrees.

Let’s talk about Gu’s home furnishings.In the past few years,the intention to enter overseas is very obvious.Since 2018,Gu’s has successively acquired Italian,German and Australian home furnishing brands.For example,it has acquired the top German furniture brand Rolf Benz for 320 million,which is quite good for overseas markets.value.

Now that Gu's pace has been forced to slow down,it is difficult for the company's overseas business to actively stimulate the company.

Let's talk about Mengbaihe.Among the large mattress companies,anti-dumping should have the greatest impact on it.

First,Mengbaihe has more production bases overseas.Now the scope of anti-dumping in the United States has expanded to Southeast Asia and other places.Even if Mengbaihe's overseas factories can be adjusted to deal with the crisis,it still needs capital and time.

Second,the major developed countries in Europe and the United States have a higher degree of acceptance of memory foam products,and memory foam home furnishing products are the main products of Mengbaihe,and anti-dumping will directly impact its overseas business.

So after the final verdict came out,on the afternoon of March 23,Mengbaihe’s stock price suddenly crashed and fell to the limit.Unknown people thought it was the company’s performance thunder.

Finally,look at Xilinmen.As a leading company in the industry,its losses are much smaller.

First of all,although Xilinmen also has a layout in Southeast Asia,its investment is relatively small and easy to adjust.For example,Xilinmen established Vietnam Safin Company and Thailand Ximen Company in Vietnam and Thailand in 2019,with investment of 2 million U.S.dollars(approximately RMB 13.07 million)and 10 million baht(approximately RMB 2.08 million).

Last year,Xi Linmen also responded to the public:“The factories in Thailand and Vietnam used to rent factories for production and operation,and the overall investment was relatively small.The production capacity will be adjusted according to the international and market situation in the future.”

Secondly,Xilinmen's business focus has always been on the domestic market,with a small proportion of overseas business.

Anti-dumping has definitely hit Xilinmen’s export business to the United States,but according to Xilinmen’s explanation:“In recent years,our company has vigorously developed its own brand business to expand brand influence.The proportion of export OEM business is not high,and the proportion of export business to the United States is even higher.Low,and the export business itself has a low gross profit margin and less profit,so it will not have a significant impact on the company's overall profitability."

Therefore,the impact of Xilinmen should be minimal.

According to the 2020 annual report data released by Xilinmen,Xilinmen realized operating income of 5.623 billion yuan in 2020,an increase of 15.53%year-on-year,and non-net profit increased by 18.35%year-on-year.Mattress products accounted for the highest proportion of operating income,reaching 51%.

Not long ago,Xilinmen also disclosed a quarterly report.In the first quarter of 2021,Xilinmen achieved total operating income of 1.25 billion,a year-on-year increase of 72.5%;gross profit margin was 34.5%,a year-on-year increase of 12.9 percentage points,and net profit margin was 7.8%,a year-on-year increase.15.3%,both exceeded market expectations.

This shows that even in the context of anti-dumping,Xilinmen still maintains its business fundamentals,which has a lot to do with its greater emphasis on the domestic market.

Generally speaking,for some small and medium-sized mattress export companies,short-term difficulties are inevitable,while for large mattress companies,due to their strong strength and high reputation,they have stronger anti-risk capabilities and are more convenient to move to the country to reduce losses.Anti-dumping cannot be achieved.Substantial threat.

3

The United States is getting worse and worse.How do we deal with it?

In the foreseeable future,the probability of doing nothing in the United States should only increase.

Some time ago,the US FBI Director also stated that the“China threat”is now“top priority”and the FBI will launch a new China-related investigation every 10 hours.

The United States is becoming more and more desperate,but we don't need to worry too much.

Looking back at the trade war,it will be found that most of the U.S.targets are China’s advantageous industries,companies and products,such as Huawei,DJI,mattresses,etc.The reason why Xinjiang cotton has been discredited is a large part of the reason.Because Xinjiang cotton threatens the US cotton industry that originally dominated the world.

But the rise of these outstanding Chinese companies and products is a general trend,and even if they encounter obstacles,it will only be temporary.

Facts have also proved that the various off-hours moves by the United States simply cannot stop Chinese products.

On December 7 last year,the General Administration of Customs announced that the total value of Sino-US trade in the first 11 months increased by 6.9%,and the trade surplus with the US was 2 trillion yuan.

Behind this reflects that countless American companies have become extremely dependent on Chinese products-even if the United States imposes tariffs on Chinese products,they have to use them.

Therefore,in the past few years,many American companies have been opposed to the government’s actions.Their reasons include:Chinese workers’craftsmanship;China’s supply chain is advanced and complete;some technologies were invented by China.....In short,it is difficult to find China.Surrogate country.

This is a Chinese product."If you use it,you can't live without it."Could the United States be able to stop it?

The same is true for China's mattress industry.The competitiveness of China's mattresses is very strong and will inevitably break the obstacles brought about by US anti-dumping in the future.

First of all,Chinese mattress companies have a considerable say in industry standards and key patents.

Take Xilinmen,a leading company in the industry,as an example.Up to now,Xilinmen has formulated nearly 30 standards at all levels,including 1 international standard and 10 national standards.At the same time,it has applied for 843 domestic patents and 16 international patents.

On March 19 this year,Xilinmen also released the"China Sleep Index Report".Based on the survey results of thousands of users in dozens of cities in China,it was proposed that people need to sleep on 8 mattresses in their lifetime.This is also the world's first mattress replacement standard.

First-class companies sell standards,and Chinese mattress companies can be among the standard setters,which is closely related to their emphasis on R&D and users.

For example,Mengbaihe's R&D investment from 2017 to 2019 was 80 million,89 million,and 101 million,respectively.The number of R&D personnel has increased from 81 in 2016 to 171 in 2019.

Xilinmen has invested more,with R&D investment of up to 125 million yuan in 2020.From 2015 to 2019,Xilinmen's total R&D expenses reached 460 million yuan,and the R&D expense ratio accounted for an average of 3.2%,exceeding 0.82%of American head bed companies and 1.40%of Chinese head bed companies.

Secondly,the strength of China's mattress products is very strong,steadily occupying the leading level in the industry.

Nowadays,the intelligentization of household products is a major trend,and mattresses are no exception.Therefore,China's outstanding mattress companies have worked hard in this field.

Dream Lily has a"0-pressure mattress".According to reports,it can make the body's head,neck,shoulders,etc.fit the mattress up to 97.8%,thereby reducing the number of turns during sleep and allowing people to have a coherent sleep cycle..

One thing worth mentioning in Xilinmen is the Smart Wave Deep Sleep System.The first-generation product,Smart 1,released last year,can accurately match thousands of people.It is reported that it can provide users with an average of 17 minutes of deep sleep.

Finally,China's huge user sample can also promote mattress companies to have more thorough research on users and continuously upgrade and iterative products.

In addition to the above advantages,Chinese mattress companies have a big advantage:China is now the world's most important mattress production base and the largest consumer market,with a market size of over 65 billion yuan,and there is still much room for improvement in China's mattress penetration rate.,Which means that the market size will be further expanded.

Therefore,for mattress companies such as Xilinmen,to do a good job in the domestic market can not only offset the impact of anti-dumping,but also continue to improve product quality based on a large sample of users,laying the foundation for opening up a diversified international trade channel in the future.

This can also be a breakthrough for many companies targeted by the United States.

China has the entire industrial chain and the largest single market.These companies rely on domestic strength to create higher-quality products,which will surely be able to dispel the temporary haze.

The historical trend is mighty,high-quality Chinese products are going to the world,and the United States cannot stop it even if it wants to block it.