China levies anti-dumping duties on US and Japanese imported chemicals

By Michelle Yeomans

- Last updated on GMT

China levies anti-dumping duties on US and Japanese imported chemicals

Related tags International trade

China's Ministry of Commerce has implemented a levy on anti-dumping duties on the United States and Japan on the importation of the chemical resorcinol, making it the latest in a series of tariffs on imported chemicals.

According to the Ministry, Japanese companies like Sumitomo Chemical and Mitsui Chemicals will now face duties of 40.5 percent exporting resorcinol to China, which is used to produce rubber adhesives, dyes and cosmetics, whilst US companies will have to pay a tariff of 30.1 percent.

The decision comes after a one-year investigation into the product, and is the latest case in a series of tariffs on imported chemicals.

Earlier in the year the ministry imposed anti-dumping duties on the imports of two chemicals widely used as coupling agents for water-based coatings present in cosmetics and other consumer goods from the US and the European Union.

The tariff is set to apply over the next five years on chemicals ethylene glycol monobutyl ether and diethylene glycol monobutyl, to which the duties, ranging from 9.3 to 18.8 percent, will hit US companies like Eastman Chemical, Dow Chemicals, and BASF SE and Sasol Germany from Europe.

This recent wave of anti-dumping duties are said to have strained ties between China and countries that export chemicals and the US and EU have been reported to have ratcheted up protection for domestic products in response to what they see as unfairly subsidised imports from China.

Striking back?

According to the International Business Times, anti-dumping levies is China's attempt at striking back at the West for restrictions on its goods.

The development is seen as a counter move from China after the US and the EU set anti-dumping duties and countervailing duty laws on Chinese products, which they found unfairly priced and subsidized,” ​it reported.

The news site further noted that China had openly denounced the move by the West, stating that the US and Europe were pursuing trade protectionism on products ranging from ceramic plates to solar panels.

According to the Ministry of Commerce’s website, the dumping of these chemicals have caused material injury to China's domestic industry and that after a period of investigation, a final decision was taken to impose levies.

Related topics Regulation & Safety East Asia China

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