As China’s goods are redirected from the US market to Japan due to restrictions, Japan has seen a surge in the number of anti-dumping investigations launched against Chinese products. The Japanese government has stated that it has strengthened its scrutiny to curb the export dumping of Chinese goods at unfairly low prices or through subsidies, which are detrimental to the Japanese market.
Japan has intensified its anti-dumping investigations on Chinese products this year, particularly in sectors such as steel, chemicals, and machinery equipment.
Up to August this year, Japan has launched 4 anti-dumping investigations on Chinese products, marking a record high in the number of investigations conducted. So far, Japan has conducted a total of 21 such investigations, with the previous highest records being two investigations each in 2012 and 2020.
The sharp increase in anti-dumping investigations by Japan comes at a time when there is an oversupply of Chinese goods. Despite weakening domestic demand in China due to a stagnant real estate market, Chinese companies are maintaining production capacities that exceed actual demand and are exporting excess products domestically. According to the Japan Iron and Steel Federation (JISF) data, about 70% of global anti-dumping investigations related to steel have targeted China.
Kojiro FUJII, representative from Nishimura & Asahi’s Brussels office, mentioned, “Goods that cannot be exported to the US may be directed towards the Japanese market.”
Moreover, with the economic slowdown in China leading to reduced demand, products that were originally meant for export to China are now finding their way into the Japanese market.
The Japanese Ministry of Economy, Trade, and Industry and the Ministry of Finance responded to requests from multiple Japanese companies such as Nippon Steel and Nippon Yakin Kogyo to conduct anti-dumping investigations on nickel-containing cold-rolled stainless steel from China and Taiwan in July this year. Additionally, in August, investigations were launched on galvanized steel from China and South Korea.
Complaints from companies like Nippon Steel argue that Chinese steel plates are being sold in Japan at prices 20%-50% lower than in China, making it impossible for Japanese companies to set prices that reflect rising costs, resulting in reduced operating profits and other losses. Nickel-containing stainless steel cold-rolled steel plates are widely used in products such as building materials, industrial equipment, and household items due to their corrosion-resistant properties.
Analysis by Nikkei Review points out that Japan setting a record high in the number of anti-dumping investigations on Chinese products this year may impact Sino-Japanese trade relations, but it also reflects the ongoing global market impact of China’s excess production capacity.
“Antidumping tariffs” are trade relief measures allowed by the World Trade Organization (WTO). When exporters sell goods in overseas markets at unfairly low prices compared to domestic markets, importing countries can impose additional tariffs to offset the price difference. However, the importing country needs to prove that domestic industries have been harmed, and the harm is a result of dumping behavior.
Japan’s Ministry of Economy, Trade, and Industry emphasizes the importance of antidumping tariffs in its “2025 Japan International Trade White Paper,” stressing that establishing international cooperation and enhancing rules to address issues like market distortions is crucial.
Currently, the number of consultations on anti-dumping complaints continues to rise, but with limited manpower, the Ministries of Economy, Trade, and Industry, and Finance have only around 40 employees responsible for conducting investigations, posing a significant challenge.
(This article references reporting by Nikkei Asian Review)