On April 3, the U.S. Trade Representative Office issued a statement and announced the list of Chinese goods to be imposed with tariffs based on the results of the so-called '301 investigation'. This involved a total of 1300 independent tariff items, with an annual trade value of approximately 50 billion U.S. dollars. Listed in the list, related to injection molding machines, extruders, blow molding machines, thermoforming and processing products, impose a 25% tariff.
The statement stated that the public can submit a written opinion to the office on the contents of the list and tax rate before May 11. In addition, the 301 investigation committee will hold a hearing on the content of the list on May 15 and accept it again before May 22. Public comments.
In response to the US tax proposal, the spokesman of the Ministry of Commerce issued a speech at 6 o'clock on the morning of April 4th, stating that China strongly opposes and will adopt equal measures against US products in accordance with the law in the recent past.
The Customs Tariff Commission of the State Council announced on the afternoon of the 4th that it decided to impose a tariff of 25% on 14 categories of 106 items such as soybeans, automobiles, and chemicals originating in the United States. The implementation date will be determined by the U.S. government's implementation of customs duties on my products. The State Council Customs Tariff Commission announced it separately. The engineering plastics involved such as polyester (PET/PBT/PCT/PTT), high-temperature nylon, nylon 66, PC, flame retardant, all of which are of great importance to the plastics industry.
Plastics and other chemicals
China's list of US counterparties shows that China will impose tariffs on 44 U.S. chemical products, including liquefied propane, polycarbonate, polyethylene, acrylonitrile, other polyesters, lubricants, epoxy resins, and polyphenylene terephthalate. Formic acid ethylene glycol flat film foil strips, polyamide-6, 6 slices, primary polyamide and other chemical products.
Coating related chemicals
At the same time, on April 3, the Ministry of Commerce issued the latest announcement. According to the relevant provisions of the Anti-dumping Regulations of the People's Republic of China, the Customs Tariff Commission of the State Council decided that as of April 12, 2018, it shall be produced in the United States and the European Union. The monobutyl ether of imported ethylene glycol and diethylene glycol is levied anti-dumping tax at the following rates, which involve coating chemical companies:
1. Eastman Chemical Company
(Eastman Chemical Company) 46.9%
2. Dow Chemical Company
(TheDow Chemical Company) 75.5%
3. 18.8% of BASFSE Europe
The method of imposing anti-dumping duties: As of April 12, 2018, when imported importers import products under investigation, they should pay the corresponding anti-dumping duties to the customs of the People's Republic of China.
China announced in January 2013 that it imposed anti-dumping duties on ethylene glycol and diethylene glycol monobutyl ether imported from the United States and Europe for a period of five years. In February 2017, China’s domestic industry filed an application, arguing that the dumping margins of the United States and Europe increased. , Request for an interim review, approved by the Chinese authorities. The Ministry of Commerce said that the investigation of the United States and Europe has dumped the product.
Monobutyl ethers of ethylene glycol and diethylene glycol are mainly used in the production of waterborne paints, paints and inks. They are used in paints such as Nippon, PPG, Dulux, Sherwin-Williams, BASF, Axalta, etc. They can also be used in aircraft coatings. This product is also a must for the integrated circuit industry. Integrated circuits are one of the major US export products to China.
to sum up:
The US tax on China (plastic products) mainly affects China’s demand side. In 2017, China’s total output of plastic products was 75.15 million tons, an increase of 3.4% year-on-year. Exports are mainly oriented to Europe and the United States. In terms of amount, 2017 exports of plastics in China 417 Billion U.S. dollars, of which exports to the United States were US$12.556 billion, which accounted for approximately 30.43% of total exports, representing a year-on-year increase of 13.29%. Once taxation is implemented, the demand for domestic polyolefins will be hit harder. Taken together, taxes on the United States In fact, China’s dependence on foreign countries is declining, and the part of the United States that imposes tax on China is still a rapidly developing industry in China. Therefore, the implementation of Sino-US trade warfare does more harm than good for China’s polyolefin industry.
For the coatings industry, China levies anti-dumping duties of 37.5%-75% on ethylene glycol and diethylene glycol monobutyl ether from companies such as Eastman and Dow, and BASF and other European chemical companies have also been affected. After the Sino-U.S. trade war broke out, China responded to the United States' defensive counterattacks to increase tariffs on certain Chinese products. According to relevant market analysis and forecast, the impact of the anti-dumping duties on American companies will be greater, and the anti-dumping duties imposed on European products will be relatively comparable. Tenderness. China's furniture lacquer companies that have just risen slightly in price have once again faced trials. In the face of rising prices or the dilemma of seeking alternatives, the possibility of seeking domestic alternatives should be greater.