The Japanese government announced a major trade preliminary ruling on Friday (June 19), determining that stainless steel containing nickel from China and Taiwan was engaged in improper dumping practices, causing substantial damage to domestic industries in Japan.
To protect local businesses, the Japanese government plans to impose a “temporary anti-dumping tax” on relevant products from China and Taiwan starting as early as July, lasting up to 4 months. The highest tax rate for Chinese products is approximately 45%, and for Taiwanese products, it is about 21%.
Japanese Minister of Economy and Industry, Akazawa Akira, stated in a press conference that based on preliminary investigations, the government has found evidence of improper low-price sales of related imported steel materials, leading to harm to relevant industries in Japan.
According to data from the Japanese Ministry of Finance, nickel-based stainless steel cold-rolled sheets are used not only in daily items such as spoons and forks but also widely in various products like train carriages. The investigation results indicate that the selling prices of these imported goods in Japan are 20% to 40% lower compared to prices in China and Taiwan.
The list published by the Japanese Ministry of Finance shows that the entities in China affected by this preliminary ruling are extensive, with over 60 manufacturers and traders included. The list covers prominent enterprises like Taiyuan Iron & Steel (TISCO), Baosteel Desheng, Zhangjiagang Puzhen (PZSS), as well as private leading companies like Qingshan Holdings, Delong Nickel Industry, Hongwang Group, and Wing King Metal.
Different tax rates have been set for various companies following the preliminary ruling: TISCO’s dumping margin rate is 33.29%; while Zhangjiagang Puzhen and other non-cooperative suppliers face the highest tax rate of 45.32%.
In Taiwan, 20 companies have been named, including Yieh United Steel Corporation (YUSCO), Walsin Lihwa Corporation (Walsin), Tang Eng Iron Works, and China Steel, among others. According to Japan’s Ministry of Finance preliminary ruling, the dumping margin rate for products related to YUSCO is relatively low at 3.86%; whereas Walsin Lihwa and other non-cooperative suppliers will be subject to a tax rate of 20.71%.
This case originated from an application filed on May 12, 2025, by four Japanese steel firms including Nippon Steel, Japan Metallurgical Industry, NAS Stainless Steel Strip, and Japanese Metal to the government. The Ministry of Economy, Trade and Industry and the Ministry of Finance of Japan subsequently conducted investigations starting from July 22, 2025, to determine whether anti-dumping duties should be imposed on related products from China and Taiwan.
The target of this investigation is “cold-rolled steel coils, plates, and strips of nickel-based stainless steel,” which contain chromium content of 10.5% or more and nickel content exceeding 0.6%.
The notice from the Japanese Ministry of Finance pointed out that such steel materials possess corrosion resistance functions, as well as aesthetic and clean design characteristics, and are used in various fields of demand.
Although the Japanese government has made a preliminary ruling, this is not the final outcome. According to reports from Japanese media, the deadline for the final investigation has been extended to November 21, 2026.
In the following procedures, the Japanese Ministry of Economy, Trade and Industry, and the Ministry of Finance will continue the investigation based on international rules under the World Trade Organization (WTO) agreements, as well as relevant domestic laws and regulations in Japan. They will provide stakeholders with the opportunity to submit evidence and opinions.
The Japanese government stated that they will further determine whether the related products are imported into Japan at dumping prices and whether such dumped imports cause substantial harm to domestic industries in Japan, and then decide on imposing the final anti-dumping duty on the related products.