On the afternoon of October 14, the Ministry of Commerce of China issued Announcement No. 41 of 2020, deciding to conduct an anti-subsidy investigation on imported PVC originating in the United States from now on. The investigation will start on October 14, 2020, and will usually end before October 14, 2021, and can be extended to April 14, 2022, under special circumstances.
The announcement pointed out that, according to the claims of the application, the products under investigation have received subsidies from the US government, and the US PVC industry (enterprises) may benefit as many as 106 subsidy projects.
This is the latest “dual reverse” measure initiated by China against US imports of chemicals. Recently, China initiated anti-dumping and anti-subsidy investigations against various types of chemical products originating in the United States, such as monoalkyl ethers, n-propanol, and polyphenylene ethers of ethylene glycol and propylene glycol.
The announcement stated that the Ministry of Commerce of the People’s Republic of China received Xinjiang Zhongtai Chemical Co., Ltd., Xinjiang Tianye (Group) Co., Ltd., Shaanxi Beiyuan Chemical Group Co., Ltd., and Tianjin Dagu Chemical Co., Ltd. on August 18, 2020. Heyibin Tianyuan Group Co., Ltd. (hereinafter referred to as the applicant) formally submitted an anti-subsidy investigation application on behalf of the domestic PVC industry, and the applicant requested an anti-subsidy investigation on imported PVC originating in the United States.
According to the evidence provided by the applicant and the preliminary review of the Ministry of Commerce, the total output of PVC of the applicant and supporting enterprises accounted for the main part of the total output of similar products in China in 2016, 2017, 2018, and 2019. Articles 11 and 13 of the Anti-subsidy Regulations of the People’s Republic of China stipulate that domestic industries submit applications for countervailing investigations.
On September 25, 2020, the Ministry of Commerce of China issued an invitation to the U.S. government for consultations on matters related to countervailing investigations, and held consultations with the U.S. government on October 13.
It is worth noting that, in the application, the applicant claims that the US government provides a total of 106 subsidies to the US PVC industry (enterprises).
American PVC occupies a dominant position in China’s import sources.
Polyvinyl chloride is called PVC in the industry and is an important organic synthetic material. Mainly used in building materials, packaging, electronic and electrical, furniture decoration, daily necessities, etc.
The global production of PVC is mainly concentrated in Asia, America and Europe. The United States is the main exporter of this product, and China is the key consumer market. According to Chinese statistics, from 2016 to 2019, the proportion of PVC exports from the United States to China in China’s total imports increased from 40.15% to 44.62% in the same period, occupying a dominant position in China’s import sources.