The impact and coping strategies of imposing anti - dumping duties

The basic concept of imposing anti - dumping duties

Imposing anti - dumping duties is when an importing country levies temporary or long - term additional taxes on goods exported to its own country at a price lower than the normal value, on the condition that it is determined that these goods cause damage to its domestic industry. This is a trade relief measure aimed at offsetting the unfair competition brought about by dumping and protecting the domestic industry. For example, the United States has imposed anti - dumping duties on Chinese photovoltaic cells, steel, etc. many times, and the tax rate can reach 50% - 200%. Dumping behavior disrupts the normal competitive order of the market, putting great pressure on the similar industries in the importing country. Imposing anti - dumping duties can restore a fair market environment to a certain extent. When foreign enterprises sell a large number of goods to the importing country at extremely low prices, the relevant industries in the importing country may be impacted, and the production, sales and profits of enterprises will all be affected. It may even lead to the closure of enterprises and unemployment of workers. Imposing anti - dumping duties can increase the price of imported goods and reduce their competitiveness, thus protecting the development of the domestic industry.

Analysis of recent cases of imposing anti - dumping duties

South Korea imposes anti - dumping duties on China and others

From April to August 2025, the Ministry of Economy and Finance of South Korea introduced three anti - dumping regulations. Anti - dumping duties were imposed on polypropylene stretched films, stainless steel flat - rolled products, and petroleum resins imported from China, Indonesia, Thailand, and Taiwan (China). The new regulations took effect from the date of publication and are valid for five years. Among them, the anti - dumping duties on polypropylene stretched films are levied on films with a thickness of not less than 10 microns produced in China, Indonesia, and Thailand. The tax rate for films produced in the Chinese mainland is from 2.50% to 25.04%. The anti - dumping duties on stainless steel flat - rolled products are levied on rolled products with a thickness of not more than 8 mm produced in China, Indonesia, and Taiwan (China). The tax rate for rolled products produced in the Chinese mainland is from 23.69% to 25.82%. The anti - dumping duties on petroleum resins are levied on petroleum resins produced in China and Taiwan (China) (except for C9 resins with a softening point of not less than 130℃). The tax rate for resins produced in the Chinese mainland is from 2.26% to 3.50%. These measures of imposing anti - dumping duties have affected the import and export trade of relevant industries. For Chinese export enterprises, it has increased the cost of products entering the South Korean market, which may lead to an increase in product prices and thus reduce their competitiveness in the South Korean market. For relevant domestic industries in South Korea, they have been protected to a certain extent, and the competitive pressure from foreign products has been reduced.

China continues to impose anti - dumping duties on imported stainless steel billets and hot - rolled sheets/coils

Since July 1, 2025, China has continued to impose anti - dumping duties on imported stainless steel billets and stainless steel hot - rolled sheets/coils originating from the European Union, the United Kingdom, South Korea, and Indonesia for a period of 5 years. The scope of products subject to anti - dumping duties is the same as that of the original anti - dumping measures, and the tax rates are consistent with the provisions announced in Announcement No. 31 of 2019. The tax rate for EU companies is 43.0%, the tax rate for UK companies is 43.0%, the tax rate for POSCO in South Korea is 23.1%, the tax rate for other South Korean companies is 103.1%, and the tax rate for Indonesian companies is 20.2%. This measure is based on the investigation results of the possibility of the continuation or recurrence of dumping of imported products originating from these countries and regions and the possibility of the continuation or recurrence of damage to the Chinese stainless steel billet and stainless steel hot - rolled sheet/coil industries. By continuing to impose anti - dumping duties, the development of the domestic stainless steel industry in China is protected, and a fair competitive environment in the market is maintained.

China imposes anti - dumping duties on solar - grade polysilicon originating from the United States and South Korea

Starting from January 14, 2026, China will continue to impose anti - dumping duties on imported solar - grade polysilicon originating from the United States and South Korea for a period of 5 years. Among U.S. companies, some companies such as REC Solar - Grade Silicon LLC have a tax rate of 57%, and Hemlock Semiconductor Corporation has a tax rate of 53.3%, etc.; among South Korean companies, OCI Co., Ltd. has a tax rate of 4.4%, and Korea Silicon Industry Co., Ltd. has a tax rate of 9.5%, etc. The Ministry of Commerce ruled that if the anti - dumping measures are terminated, the dumping of imported solar - grade polysilicon originating from the United States and South Korea in China may continue or recur, and the damage to China's solar - grade polysilicon industry may continue or recur. This measure helps to protect China's solar - grade polysilicon industry, promote the healthy development of the industry, and reduce the impact of low - priced dumped foreign products on the domestic market.

Impact of additional anti - dumping duties

Impact on the exporting country

Imposing additional anti - dumping duties will have various impacts on the enterprises and industries of the exporting country. For enterprises, the most direct impact is the increase in product cost and the decline in price competitiveness. Taking Chinese enterprises facing additional anti - dumping duties imposed by South Korea as an example, products such as polypropylene stretched films, stainless steel flat - rolled products, and petroleum resins exported from China to South Korea will see their prices rise in the South Korean market due to the increase in tax rates, which may lead to a decrease in sales volume. This may cause the enterprise's profit to decline and even affect the survival and development of the enterprise. Some small and medium - sized enterprises may be forced to withdraw from the market because they cannot bear the cost pressure brought by the additional anti - dumping duties. From the industrial level, the development of relevant industries in the exporting country may be suppressed. The scale expansion and technological innovation of the industry will be affected because enterprises' funds and resources are more used to deal with the cost problems brought by the additional anti - dumping duties rather than being invested in the upgrading and development of the industry. In addition, imposing additional anti - dumping duties may also trigger trade frictions between the exporting country and the importing country, affecting the trade relations between the two countries.

Impact on the importing country

For the importing country, imposing additional anti - dumping duties can protect its domestic industries to a certain extent. Taking China's continued imposition of anti - dumping duties on imported stainless steel billets and hot - rolled sheets/coils as an example, the domestic stainless steel industry has been protected, avoiding the impact of low - priced dumped foreign products, which is beneficial to the production and operation of domestic relevant enterprises. Domestic enterprises can compete in a relatively fair market environment and improve their own competitiveness. However, imposing additional anti - dumping duties may also bring some negative impacts. On the one hand, consumers may face higher prices. Because the prices of imported goods rise, the cost for consumers to buy relevant products increases, and the cost of living rises. On the other hand, imposing additional anti - dumping duties may trigger retaliation from trading partners, affecting the exporting industries of the importing country. If trading partners take counter - measures and impose tariffs on the products of the importing country, the exporting enterprises of the importing country will face difficulties, and the export volume may decline, which will further affect the economic development of the whole country.

Reasons for imposing additional anti - dumping duties

Protecting domestic industries

Protecting domestic industries is one of the most important reasons for imposing additional anti - dumping duties. When foreign products enter the market of the importing country in a dumping way, they will cause damage to the similar industries in the importing country. For example, a large amount of low - priced solar - grade polysilicon entering the Chinese market will affect the product sales of Chinese domestic solar - grade polysilicon enterprises, reduce the enterprises' profits, and may even lead to the closure of enterprises. Imposing additional anti - dumping duties can increase the price of imported products and reduce their competitiveness, thus protecting the survival and development of domestic industries. The government hopes to promote the upgrading and development of domestic industries and improve their competitiveness in this way.

Maintaining a fair competition order

Dumping behavior undermines the fair competition order of the market. Foreign enterprises sell products at prices lower than the normal value, putting the enterprises in the importing country at a disadvantage in the competition. Imposing anti - dumping duties can correct this unfair competition behavior and restore the normal order of the market. By imposing tariffs on dumped products, the prices of imported products become more reasonable, enabling the enterprises in the importing country to compete with foreign enterprises in a fair environment. This helps to improve market efficiency and promote the reasonable allocation of resources.

Political and diplomatic factors

In some cases, the imposition of anti - dumping duties may also be affected by political and diplomatic factors. For example, some countries may use anti - dumping duties as a political means to impose trade sanctions or pressure on other countries. In international trade, changes in political and diplomatic relations may lead to adjustments in trade policies. When the political relations between two countries are tense, one side may express dissatisfaction or exert pressure on the other side through trade measures such as imposing anti - dumping duties. In this case, imposing anti - dumping duties is not only to protect domestic industries but also has certain political and diplomatic intentions.

Strategies to deal with the imposition of anti - dumping duties

Enterprise level

Enterprises can adopt a variety of strategies to deal with the imposition of anti - dumping duties. First of all, enterprises can strengthen technological innovation to improve the quality and added value of products. Through technological innovation, enterprises can produce more competitive products. Even in the case of anti - dumping duties, they can still gain a foothold in the market with the advantages of their products. For example, enterprises can increase R & D investment, develop new production processes and technologies, and improve the performance and quality of products. Secondly, enterprises can expand markets and reduce their dependence on a single market. When a market imposes anti - dumping duties, enterprises can turn their attention to other markets and seek new sales channels and customers. In addition, enterprises can also strengthen cooperation with enterprises in the importing country. Through joint production, technical exchanges and other means, they can reduce trade frictions. Enterprises can also actively participate in anti - dumping investigations, provide relevant evidence and information, and safeguard their legitimate rights and interests.

Government level

The government can also play an important role in dealing with the imposition of anti - dumping duties. The government can strengthen communication and consultation with other countries and resolve trade disputes through diplomatic channels. For example, the government can negotiate with relevant countries to seek a solution acceptable to both sides and avoid the escalation of trade frictions. The government can also strengthen support and guidance for enterprises, provide policy incentives and financial support to help enterprises cope with the difficulties brought about by the imposition of anti - dumping duties. The government can establish a trade early - warning mechanism to timely provide relevant information and suggestions to enterprises and help them make preparations. In addition, the government can also strengthen the research and formulation of anti - dumping rules to enhance its voice in international trade.

Future trends of imposing anti - dumping duties

Trends under the rise of trade protectionism

Against the background of the current rise of trade protectionism, the situation of imposing anti - dumping duties may increase. In order to protect domestic industries, some countries may more frequently use trade remedy measures such as anti - dumping duties. This may lead to the intensification of trade frictions and affect the development of global trade. The trade relations between countries may become more tense, and trade barriers may be further raised. The uncertainties faced by enterprises in international trade will also increase, and they need to be more cautious in dealing with them.

Coordination and standardization under the multilateral trading system

Although trade protectionism has shown signs of resurgence, the multilateral trading system still plays a role. International organizations such as the World Trade Organization will regulate and coordinate trade measures such as the imposition of anti - dumping duties. In the future, the implementation of anti - dumping duties may become more standardized and transparent, and countries need to abide by relevant rules and procedures. At the same time, countries will also seek fairer and more reasonable trade solutions through multilateral trade negotiations and other means to promote the healthy development of global trade. Enterprises can also use the rules of the multilateral trading system to safeguard their legitimate rights and interests.

In short, imposing anti - dumping duties is an important issue in international trade, which involves the interests and impacts of multiple aspects. Whether it is the exporting country or the importing country, they all need to take the issue of imposing anti - dumping duties seriously and take effective measures to deal with it in order to promote the fair and healthy development of international trade.