China Extends Tariffs on Chemical Imports from the United States for Five Years

Beijing, Nov 5 (KUNA) -- China announced it will extend anti-subsidy tariffs of up to approximately 38 percent on imports of a chemical product from the United States for five years, starting tomorrow, Friday. China Central Television (CCTV) quoted Announcement No. 55 of 2026, issued by China’s Ministry of Commerce, on Thursday, stating that the Tariff Commission of the State Council decided to continue imposing anti-subsidy duties ranging from 34.2 percent to 37.7 percent on imports of normal propylene from the United States. The announcement clarified that the decision followed an investigation launched by the ministry on September 18 of last year, which concluded that subsidies provided by Washington for normal propylene could cause injury to China’s domestic sector if Beijing were to cease imposing anti-subsidy duties. It noted that Beijing will impose a duty rate of 37.7 percent on Dow Chemical and other U.S. companies, while the duty rate applied to K&Q Chemicals will be 34.2 percent. Normal propylene is widely used in the food packaging industry and is a key component in the electrolyte of lithium-ion batteries for electric vehicles. It is also used in the production of erythromycin and serves as an indispensable raw material in the manufacture of certain antibiotics, pharmaceuticals, coatings, adhesives, cosmetics, plastics, bactericides, and food additives. (End) S.L.Q. / M.A.A.