2008 Foreign Trade Friction for the Petrochemical Sector   

By Lily Wang    

Foreign trade has shown rapid growth in China's petrochemical sector in the years since December 2001 - its entry into WTO - and that friction remains a major factor in the development of the domestic petrochemical sector.
    According to incomplete statistics by China Chemical Reporter, 7 countries and regions initiated 41 antidumping cases against China's petrochemical sector in 2008, with the United States and India ranking first and the second. These measures heavily affect the exports of China's relevant chemical products and further increase pressures on domestic chemical production and the Chinese market.  
   Meanwhile, China's petrochemical associations, makers and traders have made efforts to protect domestic petrochemical production under WTO trade rules. As recently as November 2008, the Ministry of Commerce of China launched three dumping investigations of 1,4-butanediol imports against Saudi Arabia and Taiwan province; adipic acid vs USA, EU and Korea; and polyamide 6,6 vs USA, Italy, UK, France and Taiwan province. The three cases were initiated at a time when the global economy was in turmoil and some foreign countries and regions sold petrochemical products at super low prices to the Chinese market while China's exports saw a sudden drop.
   China conducted 16 antidumping measures related to petrochemical products in 2008. These measures include initial dumping investigations, interim reviews, final reviews and initial/final rulings as well as terminations.
   In addition, at the end of 2008 the Chinese government asked WTO to investigate anti-subsidy and antidumping duties that had been imposed by the US on four products from China, including off-road tires.
   Industry experts say China is taking positive steps in countering the growing tide of trade protectionism at a time when the global economy is sliding into a recession.
   In response to the economic turmoil worldwide and trade frictions, China Petroleum and Chemical Industry Association and Korea Petrochemical Industry Association had a dialogue on December 15th, 2008 to reduce friction in petrochemical trade between China and Korea. Both sides will strengthen communication and cooperation in the petrochemical sector and jointly solve the petrochemical difficulties of the current worldwide economic situation, as well as advance both countries' petrochemical trade.

Worldwide Trade Cases VS Chinese Petrochemical Products in 2008
Effective Date    Product
    Conductor    Status    CCR Issue No.
December 26, 2007    PVC
    India    final ruling    2, 2008
December 14, 2007    trimethoprim
    India    sunset reevaluation ruling    3, 2008
January 2, 2008    trichloroisocyanuric acid
    USA    reevaluation ruling    3, 2008
February 6, 2008    new pneumatic off-the-road tires
    USA    initial ruling    6, 2008
January 28, 2008    diclofenac sodium
    India    primary ruling    9, 2008
February 1, 2008    glyphosate
    Brazil    reevaluation investigation    9, 2008
February 19, 2008    trichloroisocyanuric acid
    USA    reverses final ruling    9, 2008
February 25, 2008    acetic acid
    USA    337 investigation    9, 2008
February 2008    ethyl acetate
    Korea    primary ruling    9, 2008
January 31, 2008    sodium dithionite
     Korea    sunset reevaluation ruling    9, 2008
March 2008    rubber assistants
    India    initial ruling    11, 2008
March 10, 2008    polyvinyl alcohol (PVA), HS code: 39053000
    Turkey    final ruling    11, 2008
March 20, 2008    sulfur black
    India    initial ruling    11, 2008
March 20, 2008    electrolytic manganese dioxide, HS code: 28201000
    USA    initial ruling    11, 2008
March 20, 2008    persulfates
    USA    sunset reevaluation ruling    11, 2008
March 27, 2008    benzoyl peroxide
    Korea    final ruling    12, 2008
March 25, 2008    hydrofluoric acid
    India    sunset reevaluation final ruling    12, 2008
April 9, 2008    hydroxyethylidene diphosphonic acid (HEDP)
    USA    dumping investigation    13, 2008
April 17, 2008    sodium nitrite
    USA    primary ruling    13, 2008
April 28, 2008    bicycle casings and tubes
    Turkey    sunset reevaluation investigation    14, 2008
May 16, 2008    tire
    Brazil    dumping investigation    16, 2008
May 21, 2008    potassium carbonate    India    sunset reevaluation investigation    17, 2008
June 2, 2008    polyvinyl alcohol (PVA)    USA    sunset reevaluation investigation    17, 2008
May 29, 2009    diclofenac sodium
    India    final ruling    20, 2008
July 1, 2008    sodium nitrite
    USA    final ruling    21, 2008
June 2008    glyphosate
    Brazil    reducing tax     21, 2008
July 20, 2008    hydrogen peroxide
    India    dumping investigation    23, 2008
August 11, 2008    sodium nitrite
    USA    final ruling    24, 2008
August 4, 2008    dyestuff, pigment and coloring materials
    Argentina    dumping investigation    24, 2008
July 29, 2008    polyester staple fiber
    Pakistan    dumping investigation    25, 2008
August 11, 2008    electrolytic mang