On Monday, August 18th, the Japan Iron and Steel Federation and four other industry groups requested the government to promptly establish relevant measures to prevent foreign producers, such as Chinese companies, from evading anti-dumping duties, in order to protect the Japanese steel industry from unfair import shocks.
Recently, China’s steel exports reached a new high, fueling global protectionist sentiments. Since January last year, nearly 40 countries have initiated anti-dumping investigations.
The Japanese steel industry pointed out that Chinese companies often bypass anti-dumping duties by transshipping through third countries or engaging in minimal processing (referred to as origin laundering behavior).
Takashi Yamashita, managing director of the Japan Iron and Steel Federation, cautioned that even if anti-dumping measures are eventually taken against unfair imports, without a system to prevent evasion, “the effectiveness will be greatly diminished.”
He also stressed that the industry’s goal is to strengthen systems and ensure fair competition, rather than pursuing protectionism.
Recently, the Japanese government has initiated anti-dumping investigations into various imported steel products. In July, investigations were launched into nickel-based stainless steel cold-rolled sheets and strips imported from China and Taiwan. Most recently, galvanized steel products exported from China and South Korea were included in the scope of investigations.
The Japan Iron and Steel Federation stated that 18 out of the G20 countries have established anti-avoidance systems, with only Japan and Indonesia yet to implement them.
Currently, if Japan wants to address evasion behaviors, it must go through a cumbersome and inefficient process of reinitiating a full anti-dumping investigation.
Industry groups urge the government to establish new tax rules independent of current anti-dumping duties in the tax system reform scheduled for April 1, 2026.
They also call for an increase in trade investigation personnel and improvements to the investigation system.
(This article references relevant reports from Reuters)