The spread of the international financial crisis has exacerbated the rising trend of protectionism in international trade, resulting in frequent trade frictions in the petrochemical sector and a rapid increase in the number of cases. The latest statistics from the China Petroleum and Chemical Industry Association show that in the first half of the year, China’s petrochemical products exports suffered trade remedy surveys covering “two opposites†(anti-dumping, countervailing) and “two guarantees†(protection measures, special safeguard measures). All four forms, including 4 from “two anti-insurgency†and 5 from “two guarantees.†In particular, in April, the United States launched an investigation into China’s special insurance for passenger cars and light truck tires, involving a huge amount of USD 1.7 billion. It has aroused great concern from our government and industry.
China is the world’s third largest trading body and the second largest exporter. The arrival of the international financial crisis has directly exacerbated the severity of China’s petrochemical products encountering trade frictions on the one hand and on the other, these frictions have also shown A lot of new features, new trends and new trends that are worthy of note have brought new challenges to our businesses and industries.
The relevant person in charge of the Information Department of the Petrochemical Association pointed out that the further rise of foreign trade protectionism has seriously affected the export of petrochemical-related products in China and aggravated the contradiction between supply and demand in the domestic market. Taking the largest tire products in the country in the first half of the year as an example, the United States conducted a special safeguard investigation on China's launch of tires for passenger cars and light trucks in April. It issued a ruling for a definite damage in June and proposed to impose a punitive tariff of up to 55%. According to statistics, from January to May this year, passenger car tires exported to the United States accounted for 39.23% of China's minibus tire exports and 44.13% of exports. Passenger van tires exported to the United States accounted for 27.49 of our passenger van tire exports. %, 18.59% of exports. Once the special safeguard measures are implemented, the number of passenger car tires exported to the United States will increase by about US$15 each, and the price of passenger van tires will increase by about US$30 each, which will surely have a major impact on China’s tire exports.
From a global perspective, not only developed countries engage in trade protection, but developing countries are also promoting trade protection. Since the beginning of this year, countries that have experienced trade friction with China have spread over five continents, which has caused many petrochemical products that have export competitive advantages in China to be repeatedly restricted. The United States and India are the two most prominent countries.
On January 14, the Anti-Dumping Administration of the Ministry of Commerce and Industry of India issued an announcement to launch a countervailing investigation on the sodium nitrate product from India. This is the first anti-subsidy investigation launched by India on Chinese products, and the products involved are chemicals. On May 14, the Security Protection Bureau of the Ministry of Finance of India made a final ruling on the investigation of the dimethoate safeguard measures and proposed to impose a safeguard measure tax on imported dimethoate. In addition, India also investigated the start-up protection of China's soda ash, and launched a safeguard investigation on oxo-alcohols.
The data shows that in the first half of the year, in the filed of "two counter-insurgency" and "two guarantees" in the field of chemical industry, the quantity of "two contradictions" was lower than "two guarantees" for the first time. According to reports, the investigation of “two-guarantee†measures is more time-consuming and autonomous than that of “dual-anti-countermeasures.†It is possible to adopt the “first-to-nourse†type of “first protection and post-survey†procedure, and the final investigation results are often unfavorable. The investigated party. The increase in the proportion of investigations on the “two-guarantee†measure shows that under the current global economic downturn, foreign countries are eager to protect their companies through trade protection.
At the same time, China has also stepped up anti-dumping investigations against foreign companies. The petrochemical industry actively uses trade remedy measures to protect its own interests and is at the forefront of key industries. According to incomplete statistics, in the first half of the year, China initiated 7 anti-dumping cases (up from 6 last year), including terephthalic acid, nucleotide-based food additives, and polyamide-6 chips, all of which are chemicals and related products. . One anti-dumping initial was 1,4-butanediol, and one final cut was primary dimethylcyclosiloxane. Both cases are affirmative.
Particularly worth mentioning is the anti-dumping investigation of methanol products. On June 24, the Ministry of Commerce issued an announcement deciding to initiate an anti-dumping investigation against imported methanol originating in Saudi Arabia and other places. According to reports, the number of companies applying for the survey reached 14 and the number of supporting companies reached 19, the highest in history.
Under the background of increasing international trade protectionism, the relevant persons responsible for industrial safety of the Ministry of Commerce and the Petrochemical Association reminded enterprises to pay attention to the following aspects: To understand the WTO rules and relevant knowledge of trade remedy investigations, and attach great importance to trade frictions that may be brought about. The negative impacts; We must dare to deal with and be good at responding to cases of trade frictions, especially when responding, we must pay attention to solidarity and unity; we must strengthen the monitoring of imported products, timely detect abnormal changes in imported products, and study imported products. For the potential impact on the industry and enterprises, once they grasp the evidence that the unfair import behavior has affected the production and operation of the enterprise, they must apply for trade remedy to the investigation authority in a timely manner and dare to use legal weapons to safeguard their rights and interests.
China is the world’s third largest trading body and the second largest exporter. The arrival of the international financial crisis has directly exacerbated the severity of China’s petrochemical products encountering trade frictions on the one hand and on the other, these frictions have also shown A lot of new features, new trends and new trends that are worthy of note have brought new challenges to our businesses and industries.
The relevant person in charge of the Information Department of the Petrochemical Association pointed out that the further rise of foreign trade protectionism has seriously affected the export of petrochemical-related products in China and aggravated the contradiction between supply and demand in the domestic market. Taking the largest tire products in the country in the first half of the year as an example, the United States conducted a special safeguard investigation on China's launch of tires for passenger cars and light trucks in April. It issued a ruling for a definite damage in June and proposed to impose a punitive tariff of up to 55%. According to statistics, from January to May this year, passenger car tires exported to the United States accounted for 39.23% of China's minibus tire exports and 44.13% of exports. Passenger van tires exported to the United States accounted for 27.49 of our passenger van tire exports. %, 18.59% of exports. Once the special safeguard measures are implemented, the number of passenger car tires exported to the United States will increase by about US$15 each, and the price of passenger van tires will increase by about US$30 each, which will surely have a major impact on China’s tire exports.
From a global perspective, not only developed countries engage in trade protection, but developing countries are also promoting trade protection. Since the beginning of this year, countries that have experienced trade friction with China have spread over five continents, which has caused many petrochemical products that have export competitive advantages in China to be repeatedly restricted. The United States and India are the two most prominent countries.
On January 14, the Anti-Dumping Administration of the Ministry of Commerce and Industry of India issued an announcement to launch a countervailing investigation on the sodium nitrate product from India. This is the first anti-subsidy investigation launched by India on Chinese products, and the products involved are chemicals. On May 14, the Security Protection Bureau of the Ministry of Finance of India made a final ruling on the investigation of the dimethoate safeguard measures and proposed to impose a safeguard measure tax on imported dimethoate. In addition, India also investigated the start-up protection of China's soda ash, and launched a safeguard investigation on oxo-alcohols.
The data shows that in the first half of the year, in the filed of "two counter-insurgency" and "two guarantees" in the field of chemical industry, the quantity of "two contradictions" was lower than "two guarantees" for the first time. According to reports, the investigation of “two-guarantee†measures is more time-consuming and autonomous than that of “dual-anti-countermeasures.†It is possible to adopt the “first-to-nourse†type of “first protection and post-survey†procedure, and the final investigation results are often unfavorable. The investigated party. The increase in the proportion of investigations on the “two-guarantee†measure shows that under the current global economic downturn, foreign countries are eager to protect their companies through trade protection.
At the same time, China has also stepped up anti-dumping investigations against foreign companies. The petrochemical industry actively uses trade remedy measures to protect its own interests and is at the forefront of key industries. According to incomplete statistics, in the first half of the year, China initiated 7 anti-dumping cases (up from 6 last year), including terephthalic acid, nucleotide-based food additives, and polyamide-6 chips, all of which are chemicals and related products. . One anti-dumping initial was 1,4-butanediol, and one final cut was primary dimethylcyclosiloxane. Both cases are affirmative.
Particularly worth mentioning is the anti-dumping investigation of methanol products. On June 24, the Ministry of Commerce issued an announcement deciding to initiate an anti-dumping investigation against imported methanol originating in Saudi Arabia and other places. According to reports, the number of companies applying for the survey reached 14 and the number of supporting companies reached 19, the highest in history.
Under the background of increasing international trade protectionism, the relevant persons responsible for industrial safety of the Ministry of Commerce and the Petrochemical Association reminded enterprises to pay attention to the following aspects: To understand the WTO rules and relevant knowledge of trade remedy investigations, and attach great importance to trade frictions that may be brought about. The negative impacts; We must dare to deal with and be good at responding to cases of trade frictions, especially when responding, we must pay attention to solidarity and unity; we must strengthen the monitoring of imported products, timely detect abnormal changes in imported products, and study imported products. For the potential impact on the industry and enterprises, once they grasp the evidence that the unfair import behavior has affected the production and operation of the enterprise, they must apply for trade remedy to the investigation authority in a timely manner and dare to use legal weapons to safeguard their rights and interests.
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