U.S. Survey of Chinese Antifreeze Refrigerant Domestic Trade Protectionism Rise

In recent years, the United States has frequently initiated investigations or trade remedy investigations on Chinese products. For example, at the end of November this year, China's oriented electrical steel was investigated. In this regard, experts analyzed that the economic recovery process in the United States is still relatively slow, resulting in the rise of domestic trade protectionism.

On December 3, the U.S. Department of Commerce announced that it initiated anti-dumping and countervailing investigations on 1,1,1,2-tetrafluoroethane, a refrigerant product imported from China. It is expected that preliminary rulings will be made around January 15 and March 31, respectively.

Cause of the Incident: As the process of recovery of the US economic crisis is relatively slow, domestic trade protectionism has risen and it is believed that such products from China will cause substantial losses to relevant industries in the United States.

In this regard, the Ministry of Commerce stated that it hopes that the U.S. government will abide by its opposition to trade protectionism, jointly safeguard a free, open and fair international trade environment, and properly handle trade frictions in a more rational manner. It is hoped that through consultations under the WTO dispute settlement mechanism, the United States can correct its mistaken practices and properly address China’s concerns.

On October 22 this year, MexichemFluor Corporation represented the U.S. internal industry to apply to the US Department of Commerce and the International Trade Commission for anti-dumping and anti-subsidy investigations of tetrafluoroethane products originating in China. According to information disclosed by the US Department of Commerce, MexichemFluor claims that the dumping margin of tetrafluoroethane that China exports to the United States is as high as 198.52%, and the subsidy rate also exceeds 2%. According to the U.S. Department of Commerce, the amount of such products imported from China last year was 53.2 million U.S. dollars.

Comments:

Domestic companies may be affected more by 1,1,1,2-tetrafluoroethane, R134a is a new type of refrigerant, belonging to hydrofluorocarbons, used in refrigerators, freezers and automotive air-conditioning systems to replace Freon . At present, China is an important global producer of R134a. According to statistics, the total domestic R134a production capacity will reach 225,000 tons in 2012. 50% of the output will be exported to Europe and the United States, of which the United States account for a relatively large amount. Therefore, if the US “double opposition” is established, domestic enterprises It will be negatively affected.

If Shuangzhen is set up, the export of the industry will be restrained. From the perspective of China's current refrigerant industry, the production capacity will be seriously oversupply. Affected by the downturn in the refrigerant market, the fluorine chemical industry index has fallen all the way from the high point of July 12 and the decline has exceeded 70%. . According to statistics, China exported more than 17,000 tons of such refrigerants to the United States in 12 years, and the U.S. bilateral investigation will undoubtedly worsen the downturn in the refrigerant industry and will severely curb its exports to the U.S. market.

The short-term development in the industry will still be affected by the sluggish market demand. The price of refrigerants has fallen by more than 30% since the beginning of the year and is currently hovering near the cost line. The demand for refrigerants is low season in the fourth quarter and the first quarter. The initial ruling will be made in early 14th, but it will also have a negative effect on the market. With the demand side continuing to be in a sluggish state, the current supply is still abundant, and the oversupply situation will still hinder the market trend; "The survey will involve Sinochem Group (microblogging), Juhua, Jiangsu Blue Planet, Zhejiang Sanmei and other companies. Once the United States conducts "double reverse" on Chinese refrigerant products, related companies and enterprises in the industry chain Will be greatly affected, investors need to pay attention to investment risk.

Some US “Double Counter” Cases on Chemical Products in China ● In July 2007, the United States formally initiated a “double reverse” survey on Chinese engineering tyres.

● In September 2009, the United States conducted a "double reverse" investigation on some of the phosphate products originating in China.

●In January 2010, the United States launched a "double reverse" investigation on the drill pipe of China's steel products exported to the United States.

● In October 2011, the United States conducted a "double reverse" investigation on Chinese solar cells.

● In November 2011, the United States conducted a "double reverse" investigation on crystalline silicon photovoltaic cells in China.

● In December 2011, the United States launched a "double reverse" investigation on application-grade wind tower products exported from China.