Inadequate penalties failed to prevent foreign products dumping neoprene companies requiring higher tax rates

Although Chinese companies successfully won the anti-dumping case against the dumping of chloroprene rubber from Europe, the United States, and Japan, the punitive tax rate imposed has proven too low to effectively curb the influx of foreign products in the Chinese market for over four months. The leaders of Chongqing Changshou Chemical Co., Ltd., which spearheaded the anti-dumping lawsuit, along with Shanxi Synthetic Rubber Group Co., Ltd., told reporters that they are currently gathering evidence and plan to request an increase in import tariffs during the next review stage, particularly targeting the anti-dumping duty on chloroprene rubber imported from Japan. According to Liu Yu, chairman of a San Francisco-based rubber company, since 2000, Japanese, U.S., and EU firms have been selling neoprene rubber in China at prices significantly below normal levels. As key domestic manufacturers, Changhua and Shan Oak initiated anti-dumping lawsuits, which were ultimately successful. According to the final ruling by China’s Ministry of Commerce on May 10 this year, the anti-dumping duties on imported neoprene rubber ranged from 2% to 151%. However, the actual daily tax collected was only between 2% and 3% of the maximum rate. Given that Japanese imports account for 75% of total neoprene imports into China, it remains extremely difficult to restrict the inflow of dumped products from Japan. As a result, both companies continue to face significant challenges from ongoing dumping activities. Liu Ye, another industry representative, noted that based on available data, the price of neoprene in the Japanese market is over 30,000 yuan per ton, while Japanese companies are selling it in China at much lower prices—far below the normal level. This suggests that the dumping margin is likely higher than the reported 2%. Furthermore, import data since May shows that Japanese neoprene imports remained stable before and after the final ruling, indicating that the current tariff has had little impact on curbing dumping practices. Xu Yaping, chairman of Changshou Chemical Industry Co., Ltd., explained that although domestic neoprene prices have risen this year, this is primarily due to a long-term increase in international oil prices, which has driven up global neoprene rubber prices. If this factor is excluded, the price of neoprene in China is nearly the same as it was last year. Following the announcement of the final ruling in May, Changhua and Shan Oak did not stop their efforts. Instead, they have been actively collecting evidence and preparing to file an appeal during the mid-year review process to challenge the anti-dumping duties on Japanese neoprene rubber. Both company executives emphasized that even if the penalty rates on Japanese products are increased, the domestic market price of neoprene would not see significant changes due to the current oversupply situation.

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