China imposes 43.5% anti-dumping tariff on U.S. propionic acid after yearlong investigation

China's Ministry of Commerce (MOFCOM) announced on Friday a 43.5 percent anti-dumping tariff on imports of propionic acid from the U.S., starting Sunday. It follows a yearlong investigation that found U.S. dumping led to substantial harm on the Chinese chemical industry.

This decision follows an investigation initiated on July 21, 2023, following a request from the Jiangsu Chemical Industry Association. A preliminary decision on April 19, 2024, concluded that the dumping of U.S. propionic acid was harmful to the Chinese domestic industry. After an additional three months of investigation, MOFCOM has officially substantiated the dumping claims.

Under Article 38 of the Anti-Dumping Regulations, MOFCOM recommended the imposition of the tariff to the Customs Tariff Commission of the State Council, which then made the decision to impose the anti-dumping tariff effective from July 21, 2024, as shown on the MOFCOM website.

Experts believe that China's decision to impose the  tariff is aimed at maintaining fair competition in the Chinese market, protecting the legitimate rights and interests of Chinese enterprises.

China's decision to impose a 43.5 percent anti-dumping tariff on U.S. propionic acid imports follows a year-long investigation, including preliminary rulings and detailed examinations, in accordance with anti-dumping and anti-subsidy standard procedures, as well as World Trade Organization (WTO) rules, Gao Lingyun, an expert at the Chinese Academy of Social Sciences, told the Global Times on Friday.

In contrast to U.S. tariffs on many Chinese products that based on domestic law and strategic competition, China’s tariffs on U.S. propionic acid are consistent with WTO regulations, aimed at ensuring fair competition for businesses and maintaining market equity. This approach significantly differs from that of the U.S., Gao said.

Propionic acid, a key fine chemical product and organic synthesis material, is primarily used in the production of preservatives, mold inhibitors, herbicides, and pharmaceutical intermediates, and is widely used in food, feed, pesticides, and pharmaceutical industries.