Secondly, we should intensify efforts to promote the proportion of high value-added products. At the beginning of "double-negative", Zhongwang's deep processing business was still in its infancy. After realizing the crisis of trade barriers, Zhongwang accelerated the R&D and production of deep processing centers in China. With the commissioning of deep processing centers in 2013, the sales of deep processing products increased by 91.1% year on year. Since then, the sales of deep-processing products have increased steadily year by year: from 2013 to 2015, the annual growth of more than 15% has been maintained.

Thirdly, Zhongwang of China develops 2, 5 and 7 Series cemented carbide products with higher technology content. Because in "double reverse", only 1, 3 and 6 series of common soft alloy products are affected, while 4, 4, 5 and 7 series of hard alloy products used in aviation, aerospace and other high-end fields are not included in this range.

These strategic adjustments soon achieved results. In 2012, Zhongwang overseas market in China brought sales revenue of 1.128 billion yuan, and in 2013, overseas revenue increased 52.1% to 1.717 billion yuan from a year earlier. The short-term recovery of overseas market is not the biggest harvest of Zhongwang's strategy adjustment. The R&D of deep processing products and high-end alloy products strengthens Zhongwang's strength in R&D and production of high-end products, and injects new impetus into the long-term development of enterprises.

Higher value-added products also keep Zhongwang's net profit growth at a considerable rate. From 2012 to 2015, China's Zhongwang annual profits have maintained an increase of more than 13%.

Malicious emptying and false accusation

Global integration has become a general trend. It is inevitable for Chinese enterprises to "go out" to enter the international market and compete with global enterprises. However, with the increasing market share of Made-in-China in the international arena, it is easy to become the target of foreign governments'pressure on trade barriers, and its attack methods are various. Not only do trade associations pressure the government to launch so-called anti-dumping, anti-subsidy and other means, but also alternative ways of short-selling Chinese enterprises appear frequently.

Zhongwang, China, suffered an inexplicable sell-off in July 2015. Dupre Analytics, an anonymous so-called empty-selling agency, has targeted Zhongwang, China. Dupre Analytics made no secret in its report (hereinafter referred to as DA Report) that it would profit by shorting the target company, and hoped that this short report would bankrupt Zhongwang.

Then Zhongwang responded quickly to the DA report, pointing out that the contents of the report were fabricated, not true, and responded to the queries in the report one by one through a large number of independent third-party evidence.

The DA report has also been questioned by the market - anonymity of institutions, just registered websites, the first and only short report, factual errors in the report, malicious personal attacks, ambiguous statements and so on. As for the mysterious emissary behind DA, there are different speculations, but there is a consensus that Zhongwang, China, has been undermined and has surpassed the attack on a single enterprise. According to the Financial Times, this is a growing aluminium processing enterprise in China and a leading position in the global market between European and American aluminium enterprises.

Ultimately, the Gukong storm did not have a substantial impact on Zhongwang, and DA's hope of "bankrupting Zhongwang" was even more frustrated. But fuelled by overseas competitors, the American Aluminum Extrusion Association asked the governments of the United States, China, Vietnam, Malaysia and Mexico to investigate the contents of the DA report. "If these allegations are true, the Governments of these countries must take all necessary measures to put an end to these acts." According to the American Aluminum Extrusion Association.

However, it is the American Aluminum Extrusion Association's "stronghold" - the United States International Trade Administration rejected the Association's request. The ITA's decision to withdraw anti-dumping measures against several aluminium companies, including Zhongwang, is a powerful response to the DA report, which makes the allegations against Zhongwang in China totally false.

Document Jun, vice president of China Nonferrous Metals Industry Association, pointed out that with the development of China's aluminium processing industry, competition pressure has been exerted on foreign enterprises and products. Some "big crocodiles" of international aluminium industry are not satisfied with the suppression of Chinese enterprises by overseas markets, and their tentacles are trying to penetrate into China more deeply.

Experience of "Going Out" Repeatedly Encountered by Barriers and Loyalty

Among the "going out" Chinese enterprises, there are more than one Zhongwang family in China who suffer from "double-negative" infringement. According to the statistics of the World Trade Organization, China has suffered the most anti-dumping investigations in the world for more than 20 years. Between 1995 and 2014, China faced 1 052 anti-dumping investigations, close to the sum of the number of investigations encountered by South Korea, the United States and Thailand.

The trade protection barriers built in the name of "double-reaction" in Europe and America involve many industries, such as aluminium processing, steel, chemical industry, electromechanical, textile, food, plastics, glass, rubber, transportation, paper-making, metallurgy and so on. These industries have encountered the "double-reaction" stick. Just recently, the U.S. International Trade Commission announced an unprecedented "337 survey" on steel products imported from 40 Chinese enterprises to the United States. According to relevant data, Chinese enterprises encountered 72 anti-dumping investigations in 2015.

However, enterprises that have the ability to provide high value-added and cost-effective products still maintain strong international competitiveness. Take Zhongwang, China, for example, although the company has been besieged and blocked by the "double opposition" of the United States, its overseas market earnings have increased steadily by actively expanding overseas markets other than the United States.

According to Zhongwang China's annual report for 2015, the group's overseas sales revenue is about 2.373 billion yuan, an increase of 9.0% over 2014. Regionally, Zhongwang overseas customers are mainly located in the United States, Germany, the United Kingdom, Japan, South Korea, Malaysia and other countries and regions. As a result of actively exploring overseas markets other than the United States, Zhongwang's sales revenue to Germany, the United Kingdom and other countries and regions increased by 88.7% from about 313 million yuan in 2014 to about 591 million yuan in the reporting period.

"European and American markets are mainly high-end and leading products in the application of industrial aluminium extrusion products, which has a very good guiding role in judging the trend of domestic market products and research and development." China Zhongwang officials said that Zhongwang will continue to expand its overseas market, either to enhance its global competitiveness or to enhance the company's market foresight.

It is understood that in order to expand the export market outside the United States, Zhongwang of China also set up new subsidiaries in Japan and Germany in 2014, focusing on developing the aluminum market in relevant countries.

Lu Changqing, president of Zhongwang China, once said, "I do not want to interpret the statements of international competitors as unkind accusations. I prefer to interpret them as a lack of basic knowledge of China's industrial policies. The growing competitiveness of Chinese enterprises in the international market stems from their own diligence and efforts, rather than from the complaints of double standards of some international counterparts, questioning that Chinese enterprises rely on government support, export tax rebates and other means to participate in competition. After all, the market is flat. Please face the growth of Chinese enterprises with a healthy attitude.

Industry insiders said that China Zhongwang's "counter-offensive war" against overseas markets deserves peer reference in terms of strategy and skills. Five years later, the U.S. government finally decided to abolish the anti-dumping measures against China's aluminium enterprises. Although all unfair treatment has not been completely abolished, it will undoubtedly further enlarge the overseas competitive advantage of the enterprises that have already had a strong competitive power.