Chinese Investigation into US Propanol

Chinese Investigation into US Propanol

Chinese authorities have launched investigations into the dumping activities of US companies that export propanol to China.


Propanol is an ink solvent used in printing food packages and is also used in antibiotic production. Amidst the rising tensions in the duration of the trade war between the superpowers, there have been increasing restrictions, qualitative policy measures, and initiatives by the Chinese trade authorities imposed on the US goods imported in China.


The US President, Donald Trump, put restrictions on Chinese companies like Huawei and imposed tariffs of around 250 billion dollars. China has, in turn, retaliated, threatening qualitative action and imposing 110 billion dollars of its own tariffs.


The trade war has hit the global market hard and most nations are reeling from the slowing economic growth. China and the US have recently sat down to negotiate a 90-day ceasefire on tariffs where China agreed to import more US agricultural goods and President Trump desisted in imposing further planned tariffs of 200 billion dollars.


The anti-dumping investigation may be another rocky bump in the road to economic stability, indicating frictions in the US-China trade avenues. However, China’s strict environmental and trade policies are the reason for the current investigation as trade authorities seek to stop dumping practices.


Anti-dumping investigations on the propanol imported from the US have been introduced as a measure to stop industrial damage and polluting influences in the environment. The Commerce Ministry in Hong Kong will commence investigations into dumping actions that happened during 2018. They will be considering the impact and incident of propanol dumping within the period January 1 to December 31, 2018.


The ministry will also launch a probe into industrial waste pollution activity done by US businesses from January 1, 2015 to December 31, 2018. The probe launched on 23 July and can extend to January 23, 2021.

The application for the investigation was initiated and filed by Chinese firms, Nanjing Nuoao New Material Co, Nanjing Rongxin Chemical Co. Ltd, and Zibo Nalcohol Chemical Co. Ltd. The application was submitted on June 14, 2019, to the Commerce ministry.


The three companies are producers of more than half of China’s propanol and have had the majority share in the market for the investigation period from 2015 till 2018. Their intervention may be a sign that they want to nativize the propanol market and reduce US presence in the Chinese economy.