Many countries such as Europe, the United States, and India have imposed tariffs one after another!
- Author:Maintenance network
- Source:Maintenance network
- Release Date:2026-11-04
China's chemical production capacity continues to expand, but overseas markets have begun to intensively build trade barriers.From PVC, epoxy resin, and 1,4-butanediol in Europe, to MDI and PTMEG in the United States, and ethambutol hydrochloride in India, anti-dumping and countervailing investigations against Chinese chemical products are emerging in multiple markets.On November 2, the Financial Times quoted a latest report from the US-based Rhodium Group as pointing out that China's output of some key chemical products has increased significantly in just five years, and some products account for nearly half of global production.At the same time, European chemical companies are facing capacity withdrawals, factory closures and cost pressures.The expansion of China's chemical industry and the contraction of its overseas counterparts are creating increasingly direct competition.This competition is no longer just a price competition between chemical companies, but has also begun to extend to international trade policies and global supply chains.
01Expansion of production in five years, with output of some products nearly doubled
Let’s look at a set of data first.According to a report by the Financial Times on November 2, 2026, the output changes of China's chemical industry from 2020 to 2025 were sorted out.In the past five years, the output of some key petrochemical products in China has increased significantly: styrene: an increase of 97%; ethylene: an increase of 80%; polyethylene: an increase of 75%; polypropylene: an increase of 71%; PVC: an increase of 15%.Among them, styrene production has almost doubled, and ethylene, polyethylene and polypropylene have also achieved substantial growth.Currently, China accounts for about half of global production of some chemical products.In the past, the supply of some high-end chemical products was mainly in the hands of European, American, Japanese and Korean companies.Nowadays, Chinese companies are gradually entering these fields, and the competition faced by overseas companies is no longer limited to traditional basic chemicals.Changes in export markets are also evident.The report pointed out that although China's chemical product exports account for less than 10% of total domestic output, the export of some products is growing very fast.From 2020 to 2025, the export volume of four categories of products, including styrene, polyethylene, and polypropylene, will increase by more than 40% annually.In other words, the main output of China's chemical industry is still absorbed by the domestic market, but more and more new supplies are beginning to look for markets overseas.For overseas manufacturers, pressure will follow.
02Conflicts among overseas manufacturers broke out intensively
If the growth of China's chemical production capacity is a change on the supply side, then the shrinkage of the European chemical industry has made this competition even more acute.Data reports show that the chemical production capacity planned to be closed in Europe will increase from 2.9 million tons in 2022 to 17.2 million tons in 2025, which is approximately 5.9 times the original scale.On the one hand, China's chemical production continues to grow, and on the other hand, a large number of chemical production capacities in Europe are scheduled to be closed.European manufacturers believe that low-price competition from China's chemical products has put greater pressure on local companies.However, the difficulties faced by the European chemical industry are not limited to Chinese import competition.Energy costs, production costs and changes in global demand are also affecting the operations of European companies.The report also mentioned that the cost of natural gas in Europe is significantly higher than that in the United States, which further weakens the competitiveness of European chemical companies.Moreover, China's chemical industry itself is not without pressure.The Financial Times quoted a report as pointing out that the profits of Chinese chemical companies have been under pressure for many consecutive years, with some companies operating at a loss and inventories increasing.The previous slowdown in investment growth does not mean that existing production capacity has withdrawn from the market.This has created a rather tricky situation: there is sufficient supply of some domestic products, and companies need to find more sales markets; overseas manufacturers hope to reduce the competitive pressure brought by imported products through trade protection measures.
The EU has begun to focus on chemicals and plastics. Europe is no longer satisfied with taking trade remedy measures against certain types of products alone.On October 23, Reuters reported that ministers from many EU countries held a meeting in Dublin, Ireland, to discuss how to deal with the expanding trade deficit with China.During the meeting, the EU proposed that in addition to the automotive field previously discussed, it also needs to pay attention to chemical industry, machinery and other industries.EU Trade Commissioner Maroš Sefcovic said that the plastics industry may become the next focus area for launching safeguard measures investigations, and the EU is evaluating whether it has the conditions to launch an investigation.
The chemical products involved include: PVC, 1,4-butanediol (BDO), epoxy resin, and adipic acid. It can be seen from the specific investigation cases of each cargo that the EU’s investigation scope has covered basic chemical raw materials, plastic raw materials, and multiple downstream industrial materials.United States: High tax rates and new investigations. The United States’ trade remedy actions against Chinese chemical products are also worthy of attention.MDI (diphenylmethane diisocyanate), PTMEG (polytetramethylene ether glycol), and amine compounds. The products involved in the US investigation cover polyurethane raw materials and various chemical intermediates, and the scope of trade restrictions is expanding.India is also increasing its investment. India has always been an important overseas market for China's chemical products, and it is also one of the countries that is more active in launching trade remedy investigations against Chinese goods.On September 17, 2026, the Indian Ministry of Commerce and Industry made a final anti-dumping ruling on ethambutol hydrochloride originating in China and Thailand.According to information released by the China Trade Remedy Information Network on September 18, 2026, the applicable tax rate for China Wuhan Wuyao Pharmaceutical Co., Ltd. is US$5,347/ton, and that for other Chinese manufacturers is US$7,234/ton. The measure is recommended to be implemented for five years.The tax rate in this case is calculated in US dollars per ton, not an ad valorem rate.In addition, India has also launched anti-dumping investigations into various types of chemical products from China, involving pesticide intermediates, chemical raw materials and fine chemical products.For example, India's anti-dumping investigation into the herbicide intermediate PEDA and related products produced in China was launched as early as March 29, 2024, and the final results were announced on March 21, 2025.For Chinese chemical export companies, the risk in the Indian market lies not only in the level of tax rates, but also in the possibility that different tax rates and trade remedy conditions may apply to different products and different manufacturers.Other markets are also following suit. In addition to Europe, the United States and India, other markets have also taken trade remedy actions against Chinese chemical products.Saudi Arabia is an example.According to investigation information released by the Saudi General Administration of Trade Remedies, on January 22, 2026, Saudi Arabia launched an anti-dumping investigation into epoxy resin from China, India, South Korea and Taiwan.As of now, the case is still under investigation.At the same time, Saudi Arabia has previously taken anti-dumping measures against titanium dioxide from China. The relevant investigation was launched on October 9, 2024, and is currently in the final implementation stage of measures.These cases show that the trade barriers faced by China's chemical products are not only concentrated in traditional European and American markets. Some Middle Eastern markets are also strengthening the protection of local chemical industries.
03 Chemical trade, what’s next?
For Chinese chemical companies, competition in overseas markets is extending from product prices to trade policies, rules of origin and import access.For freight forwarders and shipping companies, such changes also have several practical implications that need to be noted in advance.First, exporters may re-evaluate destination markets and order arrangements for products that have already been subject to high anti-dumping duties.Some cargo may be diverted to other countries and regions, resulting in changes in the cargo volume structure of the original routes.Secondly, during the trade investigation, importers and exporters may need to check the product customs code, origin, manufacturer information and relevant supporting documents in advance.Especially for chemicals, similar product names do not mean that the customs classification and investigation scope are completely consistent.Finally, market transfer cannot simply be understood as an increase in cargo volume.An increase in tariffs in one market may divert goods to another market, or may directly lead to a reduction in orders, causing customers to wait and see, or even change the source of procurement.The specific impact will also depend on product prices, local demand and alternative supply capabilities.The production capacity advantage of China's chemical industry still exists, but trade barriers in overseas markets are also increasing.For export companies, not only production costs and shipping costs must be calculated, but also trade remedy measures, customs clearance costs and policy changes in the destination country.For freight forwarders, changes in the chemical export market may first be reflected in customer inquiries, booking destinations and cargo flows.Whoever can grasp the policy changes in the destination country earlier will have a better chance of catching business when customers adjust their supply chain.
01Expansion of production in five years, with output of some products nearly doubled
Let’s look at a set of data first.According to a report by the Financial Times on November 2, 2026, the output changes of China's chemical industry from 2020 to 2025 were sorted out.In the past five years, the output of some key petrochemical products in China has increased significantly: styrene: an increase of 97%; ethylene: an increase of 80%; polyethylene: an increase of 75%; polypropylene: an increase of 71%; PVC: an increase of 15%.Among them, styrene production has almost doubled, and ethylene, polyethylene and polypropylene have also achieved substantial growth.Currently, China accounts for about half of global production of some chemical products.In the past, the supply of some high-end chemical products was mainly in the hands of European, American, Japanese and Korean companies.Nowadays, Chinese companies are gradually entering these fields, and the competition faced by overseas companies is no longer limited to traditional basic chemicals.Changes in export markets are also evident.The report pointed out that although China's chemical product exports account for less than 10% of total domestic output, the export of some products is growing very fast.From 2020 to 2025, the export volume of four categories of products, including styrene, polyethylene, and polypropylene, will increase by more than 40% annually.In other words, the main output of China's chemical industry is still absorbed by the domestic market, but more and more new supplies are beginning to look for markets overseas.For overseas manufacturers, pressure will follow.
02Conflicts among overseas manufacturers broke out intensively
If the growth of China's chemical production capacity is a change on the supply side, then the shrinkage of the European chemical industry has made this competition even more acute.Data reports show that the chemical production capacity planned to be closed in Europe will increase from 2.9 million tons in 2022 to 17.2 million tons in 2025, which is approximately 5.9 times the original scale.On the one hand, China's chemical production continues to grow, and on the other hand, a large number of chemical production capacities in Europe are scheduled to be closed.European manufacturers believe that low-price competition from China's chemical products has put greater pressure on local companies.However, the difficulties faced by the European chemical industry are not limited to Chinese import competition.Energy costs, production costs and changes in global demand are also affecting the operations of European companies.The report also mentioned that the cost of natural gas in Europe is significantly higher than that in the United States, which further weakens the competitiveness of European chemical companies.Moreover, China's chemical industry itself is not without pressure.The Financial Times quoted a report as pointing out that the profits of Chinese chemical companies have been under pressure for many consecutive years, with some companies operating at a loss and inventories increasing.The previous slowdown in investment growth does not mean that existing production capacity has withdrawn from the market.This has created a rather tricky situation: there is sufficient supply of some domestic products, and companies need to find more sales markets; overseas manufacturers hope to reduce the competitive pressure brought by imported products through trade protection measures.
The EU has begun to focus on chemicals and plastics. Europe is no longer satisfied with taking trade remedy measures against certain types of products alone.On October 23, Reuters reported that ministers from many EU countries held a meeting in Dublin, Ireland, to discuss how to deal with the expanding trade deficit with China.During the meeting, the EU proposed that in addition to the automotive field previously discussed, it also needs to pay attention to chemical industry, machinery and other industries.EU Trade Commissioner Maroš Sefcovic said that the plastics industry may become the next focus area for launching safeguard measures investigations, and the EU is evaluating whether it has the conditions to launch an investigation.
The chemical products involved include: PVC, 1,4-butanediol (BDO), epoxy resin, and adipic acid. It can be seen from the specific investigation cases of each cargo that the EU’s investigation scope has covered basic chemical raw materials, plastic raw materials, and multiple downstream industrial materials.United States: High tax rates and new investigations. The United States’ trade remedy actions against Chinese chemical products are also worthy of attention.MDI (diphenylmethane diisocyanate), PTMEG (polytetramethylene ether glycol), and amine compounds. The products involved in the US investigation cover polyurethane raw materials and various chemical intermediates, and the scope of trade restrictions is expanding.India is also increasing its investment. India has always been an important overseas market for China's chemical products, and it is also one of the countries that is more active in launching trade remedy investigations against Chinese goods.On September 17, 2026, the Indian Ministry of Commerce and Industry made a final anti-dumping ruling on ethambutol hydrochloride originating in China and Thailand.According to information released by the China Trade Remedy Information Network on September 18, 2026, the applicable tax rate for China Wuhan Wuyao Pharmaceutical Co., Ltd. is US$5,347/ton, and that for other Chinese manufacturers is US$7,234/ton. The measure is recommended to be implemented for five years.The tax rate in this case is calculated in US dollars per ton, not an ad valorem rate.In addition, India has also launched anti-dumping investigations into various types of chemical products from China, involving pesticide intermediates, chemical raw materials and fine chemical products.For example, India's anti-dumping investigation into the herbicide intermediate PEDA and related products produced in China was launched as early as March 29, 2024, and the final results were announced on March 21, 2025.For Chinese chemical export companies, the risk in the Indian market lies not only in the level of tax rates, but also in the possibility that different tax rates and trade remedy conditions may apply to different products and different manufacturers.Other markets are also following suit. In addition to Europe, the United States and India, other markets have also taken trade remedy actions against Chinese chemical products.Saudi Arabia is an example.According to investigation information released by the Saudi General Administration of Trade Remedies, on January 22, 2026, Saudi Arabia launched an anti-dumping investigation into epoxy resin from China, India, South Korea and Taiwan.As of now, the case is still under investigation.At the same time, Saudi Arabia has previously taken anti-dumping measures against titanium dioxide from China. The relevant investigation was launched on October 9, 2024, and is currently in the final implementation stage of measures.These cases show that the trade barriers faced by China's chemical products are not only concentrated in traditional European and American markets. Some Middle Eastern markets are also strengthening the protection of local chemical industries.
03 Chemical trade, what’s next?
For Chinese chemical companies, competition in overseas markets is extending from product prices to trade policies, rules of origin and import access.For freight forwarders and shipping companies, such changes also have several practical implications that need to be noted in advance.First, exporters may re-evaluate destination markets and order arrangements for products that have already been subject to high anti-dumping duties.Some cargo may be diverted to other countries and regions, resulting in changes in the cargo volume structure of the original routes.Secondly, during the trade investigation, importers and exporters may need to check the product customs code, origin, manufacturer information and relevant supporting documents in advance.Especially for chemicals, similar product names do not mean that the customs classification and investigation scope are completely consistent.Finally, market transfer cannot simply be understood as an increase in cargo volume.An increase in tariffs in one market may divert goods to another market, or may directly lead to a reduction in orders, causing customers to wait and see, or even change the source of procurement.The specific impact will also depend on product prices, local demand and alternative supply capabilities.The production capacity advantage of China's chemical industry still exists, but trade barriers in overseas markets are also increasing.For export companies, not only production costs and shipping costs must be calculated, but also trade remedy measures, customs clearance costs and policy changes in the destination country.For freight forwarders, changes in the chemical export market may first be reflected in customer inquiries, booking destinations and cargo flows.Whoever can grasp the policy changes in the destination country earlier will have a better chance of catching business when customers adjust their supply chain.