South Korea intends to impose anti-dumping duties on PET resins originating in China

1. anti-dumping duty decision background

recently, at the 453rd meeting of the Trade Commission (Trade Commission) of the Ministry of Trade, Industry and Resources of the People's South Korea of China, the Trade Commission made a proposal to impose anti-dumping duties on imported polyethylene terephthalate (PET) resin originating in China. The tax rate of the anti-dumping duty is 7-7.98%, and the planned implementation period is 5 years. This decision is based on the application submitted by South Korea company TK Chemical on November 20, 2023, marking the official intervention of South Korea in the anti-dumping investigation of Chinese PET resin.

2. Involved Chinese Enterprises and Investigation Process

the anti-dumping investigation involved four Chinese manufacturers, namely Hainan Yisheng Petrochemical Co., Ltd., Yisheng Chemical Petrochemical Co., Ltd., China Resources Chemical Materials Technology Co., Ltd. and Zhuhai China Resources Chemical Materials Technology Co., Ltd. After receiving the application, the Trade Commission made a preliminary anti-dumping ruling in June this year, and then held a hearing and other formal investigation procedures. After a detailed investigation, the Trade Commission finally decided to recommend the imposition of anti-dumping duties on the Chinese enterprises involved in the case.

Impact of

3. Anti-dumping Duty on China's PET Resin Export

south Korea is one of the important export markets of China's PET resin, and the decision of the anti-dumping duty will undoubtedly have a direct impact on the export of relevant Chinese enterprises. On the one hand, the increase of tax rate will increase the cost of Chinese products and reduce their competitiveness in the South Korea market; on the other hand, the long-term implementation of anti-dumping duties may lead to the decline of Chinese enterprises' share in the South Korea market, and even face the risk of being replaced.

4. South Korea other imports of anti-dumping investigations

in addition to imposing anti-dumping duties on China's PET resin, the South Korea Trade Commission also decided to initiate anti-dumping investigations on imported carbon structural steel and other alloy structural steel hot-rolled thick steel plates originating in China. This decision is a further indication of South Korea's determination to protect its industries. At the same time, the South Korea also plans to release the results of the anti-dumping investigation on imported OPP protective films originating in China, Indonesia and Thailand in February next year, which will further affect the international trade pattern of related products.

5. Anti-dumping Duty Decision: Potential Impact and Countermeasures

the South Korea's decision to impose anti-dumping duties on Chinese PET resins will not only have a direct impact on relevant Chinese companies, but may also cause certain fluctuations in the trade relations between the two countries. Faced with this situation, relevant Chinese companies can take a variety of countermeasures, such as improving product quality, reducing production costs, and expanding other markets to deal with the challenges brought by anti-dumping duties. At the same time, the government can also maintain the stability and development of trade between the two countries by strengthening bilateral communication and promoting trade diversification.