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.

click here for the METD website and instructions
Prompted by the Russian investigation, the China Chamber of Commerce for Machinery and Equipment (CCCME) met to determine its official response, not yet revealed.

The CCCME is also worried because Russia's is the second antidumping investigation into bearings from China launched this year. In March, the Ukraine announced it has initiated an official investigation into ball and roller bearings from China allegedly dumped in the Ukrainian market. The Ukrainian action is reportedly in response to complaints by the country's powerful Ukrpidshypnyk Industrial consortium.

In the past ten years, China has been targeted by 469 anti-dumping investigations from WTO member countries alone. Russia's move is particularly bold, as China and Russia share a politically sensitive economic and trade relationship.