China's export to Europe and daily ceramics are taxed again

The final outcome of the European Union’s anti-dumping investigation into China’s daily-use ceramics, which lasted over a year, has now been officially released. According to the EU’s final decision, Chinese daily-use ceramic products will face anti-dumping duties ranging from 13.1% to 36.1% for the next five years. Specifically, more than 50 companies in Fuling, Hunan Province, which are major producers of ceramic tableware, will be subject to duty rates of 18.3% and 17.9%, respectively. This represents a significant reduction compared to the initial provisional ruling, which had proposed higher tariffs. While the lower tax rate is a positive development, the overall reaction from the industry remains mixed. On one hand, the reduced duty rate eases some pressure on Chinese exporters. On the other hand, the ongoing anti-dumping measures have already caused considerable disruption to export activities, with many companies facing challenges in maintaining their market presence in Europe. The China Chamber of Commerce for Import and Export of Light Industrial Products and Crafts has strongly contested the EU’s actions, arguing that China’s ceramic exports do not constitute dumping. The chamber criticized the EU for misusing trade protectionist measures, which not only harm bilateral economic relations but also negatively impact both Chinese and European industries. Consumers, importers, and retailers are the primary victims of these trade barriers. The investigation began in February 2012, with a preliminary ruling issued in November of the same year. In February 2013, the EU revised its initial findings, lowering the temporary tariff from 17.6% to 58.8% to a range of 13.1% to 36.1%. The average tax rate was set at 26.6%. Legal experts from the Chinese ceramics industry believe that such high tariffs could push many small and medium-sized enterprises out of the EU market. Currently, China has a strong capacity to export daily-use ceramics to Europe. A few years ago, there were between 2,000 and 3,000 Chinese companies actively operating in the EU market. However, with repeated trade remedy measures, the number of active players has significantly decreased. According to Li Wenfeng, vice president of the China Chamber of Commerce for Import and Export of Light Industrial Products and Crafts, the total amount of trade remedies applied to Chinese daily-use ceramics from 2012 to the present exceeds $821 million, affecting nearly $1 billion in exports. Over the years, driven by market forces and supportive national policies, China’s light industry export companies have made efforts to transform and upgrade. However, despite this progress, China still faces challenges as a major exporter but not yet a strong trading nation. The traditional growth model remains heavily reliant on scale rather than quality, with low product value, limited core technologies, and weak brand recognition. As a result, profit margins remain slim. In recent years, the external environment for China’s foreign trade has become increasingly complex, with rising costs and shrinking market opportunities abroad. These factors make it even more challenging for Chinese companies to compete globally. Frequent trade disputes involving Chinese ceramic exports are an inevitable part of China’s export-oriented development. Industry insiders note that ceramics are a traditional and highly competitive Chinese export product, holding a significant share of the global market. Their influence on international prices often leads to trade tensions. This is partly due to China’s competitive advantages in technology and labor resources, which other countries find difficult to match. In response, many countries resort to trade barriers to protect their domestic industries. Additionally, the Chinese ceramic industry itself faces issues of excessive competition, highlighting the need for better regulation of export practices. By improving order and focusing on quality, the industry can strengthen its position in the global market while reducing the likelihood of future trade conflicts.

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