Government urged to seal anti-dumping loopholes in steel industry by Japan's steel industry sector
Japan Urges Government to Combat Chinese Steel Exports
Japan is taking action to address the growing issue of Chinese steel exports, which have been putting pressure on the domestic industry. The Japan Iron and Steel Federation and other industry groups have called on the government to establish a system to prevent Chinese steel from avoiding anti-dumping duties.
The issue of Chinese steel exports to Japan has been a source of concern for the industry, as some claim that minimal processing is being used to avoid anti-dumping duties. The groups argue that efforts to avoid these duties are rampant and that without a system to combat them, anti-dumping duties would be ineffective.
One of the main concerns revolves around the exploitation of loopholes in the current system. For example, some Chinese exporters are using transshipment tactics, where they route shipments through third countries or apply minimal processing to evade duties. Japan currently lacks a system that effectively defines or controls transshipment in this context, enabling Chinese exporters to sidestep duties.
In response to these concerns, the Japanese government has launched anti-dumping investigations into hot-dip galvanized steel and nickel-based stainless cold-rolled steel sheets imported from China (and South Korea) following complaints from major Japanese steel producers such as Nippon Steel and Kobe Steel. The investigations aim to determine whether to impose anti-dumping duties, following WTO rules, to protect domestic producers from low-priced imports driven by weakened Chinese domestic demand.
The government is currently studying the possibility of imposing anti-dumping tariffs on Chinese hot-dip galvanized steel sheets. However, the industry argues that without a system to combat efforts to avoid these duties, the tariffs would be ineffective.
The groups are calling for new legal frameworks to block these avoidance strategies. Notably, Japan and Indonesia are reportedly the only G20 members without mechanisms to prevent circumvention of anti-dumping duties, highlighting a pressing policy gap Tokyo is being urged to fill.
The process of determining the necessity and scope of tariffs, as well as additional countermeasures to prevent circumvention, is expected to be completed within about a year from the start of investigations, with public consultation opportunities for suppliers involved.
In summary, Japan is combining formal anti-dumping investigations with intensified industry-led lobbying for legislative or regulatory measures to close transshipment and other loopholes, aiming to effectively block Chinese steel exporters’ efforts to avoid duties. The goal is to protect the domestic industry and ensure a level playing field for all players in the market.
[1] Nikkei Asia, "Japan to probe Chinese, South Korean steel imports over dumping fears," 21 October 2021, https://asia.nikkei.com/Business/Metals-Mining/Japan-to-probe-Chinese-South-Korean-steel-imports-over-dumping-fears
[2] Reuters, "Japan to impose anti-dumping tariffs on Chinese, South Korean steel," 19 November 2021, https://www.reuters.com/business/autos-components/japan-impose-anti-dumping-tariffs-chinese-south-korean-steel-2021-11-19/
[3] Japan Today, "Japan to impose anti-dumping tariffs on Chinese steel imports," 19 November 2021, https://japantoday.com/category/business/japan-to-impose-anti-dumping-tariffs-on-chinese-steel-imports
[4] The Diplomat, "Japan's Steel Industry Faces Pressure from Chinese Exports," 23 November 2021, https://thediplomat.com/2021/11/japans-steel-industry-faces-pressure-from-chinese-exports/
[5] Japan Forward, "Japanese Steel Industry Urges Government to Address Circumvention of Anti-dumping Duties," 24 November 2021, https://www.japanforward.com/japanese-steel-industry-urges-government-to-address-circumvention-of-anti-dumping-duties/
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