The Ministry of Commerce started an anti-dumping investigation on Thursday into imported photographic paper and paperboard, showing Chinese companies are getting more active in using legal procedures to protect their interests, trade experts said.

After evaluating an application from Lucky Film Co Ltd, China's largest photographic filmmaker, the ministry decided to investigate products made in the European Union, the United States and Japan.

The two largest makers of photographic paper and paperboard, aside from Lucky, are Japan's FujiFilm Corp and Eastman Kodak Co of the United States.

The products are used mainly for developing photos.

The investigation is scheduled to be completed within a year, but under special circumstances, it could be extended an additional six months, the ministry said in a statement.

Cai Kaiming, a lawyer at the Beijing-based Dacheng Law Offices, said that during that period, the government could reach a preliminary decision and adopt temporary measures.

Before an anti-dumping probe can be opened, the ministry must find evidence that the applicant faces unfair competition from imported products that has reduced their profits, lowered production, or increased inventories, experts said.

Lucky Film, headquartered in Baoding in Hebei province, was previously affiliated with Kodak, which used to be the second-largest shareholder in Lucky. The partnership ended in 2007.

Lucky's shares closed 3.6 percent higher on the Shanghai Stock Exchange on Thursday after news of the investigation was released.

The company has declined to comment.

The Shanghai Composite Index lost 0.79 percent, falling to 2855.22 on Thursday

Chinese companies have become more active in turning to legal procedures and measures provided under the World Trade Organization (WTO) to safeguard their interest, experts said.

Before this case, the nation conducted anti-dumping and anti-subsidy investigations into chicken products from the United States and in September imposed an anti-dumping duty on US broiler chicken products.

"In the nine years since China's entry into the WTO, Chinese companies and trade councils are becoming better adapted to and familiar with WTO rules, which help them protect their interests," said Sun Zhenyu, China's outgoing ambassador to the WTO.

China has also been the target of similar procedures, and during the first half of this year, 13 countries and regions initiated 37 cases against it.

China Daily

(China Daily 12/24/2010 page14)