The European Union has emerged as the third-largest export market for Chinese ceramic tiles, accounting for approximately 10% to 12% of total ceramic exports. However, this position is now under threat due to the imposition of punitive anti-dumping tariffs by the EU. The final tariff rates have been officially released, and they are significantly impacting the Chinese ceramics industry.
Foshan-based companies such as Jianyi and Xinruncheng Ceramics have been assigned separate duty rates of 26.3% and 29.3%, respectively. Meanwhile, over 30 Foshan-based enterprises that participated in the investigation received a 30.6% tariff. In contrast, many small and medium-sized ceramic manufacturers in Foshan, which did not respond to the investigation, will face an eye-watering 69.7% tax rate. These high tariffs will remain in effect for the next five years, putting immense pressure on the sector.
The EU remains one of the most important markets for Chinese ceramic exports. The new tariffs are expected to further restrict export volumes, making it increasingly difficult for Chinese companies to compete. At the 110th Canton Fair, many ceramic exporters reported a noticeable decline in orders. Zhu Zhaozhao, regional manager for Hongyu Ceramics Exports in Europe and the U.S., noted that demand from European buyers had dropped significantly due to the EU’s anti-dumping measures and the ongoing debt crisis.
For companies like Foshan Imeyin Ceramics, the EU used to account for one-third of their overseas sales. However, the recent drop in EU buyers at the fair signals a potential loss of market share. General Manager Ye Jingmei stated that the company is now facing serious challenges in maintaining its presence in the European market.
It’s not just the EU that is posing challenges. Other regions are also imposing trade barriers. Brazil, once a fast-growing market for Chinese ceramic tiles, recently raised import tariffs from 15% to 35%, while also introducing licensing requirements. Although no formal anti-dumping investigation has been launched, these new measures have made it harder for Chinese companies to enter the Brazilian market.
Kong Lingsa, deputy general manager of Mona Lisa Industrial Co., explained that while companies can fight anti-dumping cases through legal channels, situations like Brazil’s are more difficult to address. “There’s little we can do when there’s no clear case of dumping,†she said. “The government needs to step in and negotiate with the other side.â€
In June of this year, South Korea also imposed anti-dumping duties on Chinese ceramic tiles, with rates ranging from 9.14% to 29.41%. The Korean Trade Commission extended these duties for another three years, further complicating the export landscape for Chinese manufacturers.
At the same time, domestic factors are also affecting the ceramics industry. The slowdown in the real estate sector, driven by macroeconomic policies, has led to a decline in demand for building materials, including ceramic tiles. Kong Lingye, a representative from a major ceramics company, warned that the situation will likely worsen next year. While large brands may still maintain some profit margins, smaller manufacturers focused on volume are struggling to survive.
Overall, the combination of international trade barriers and domestic economic challenges is creating a tough environment for the Chinese ceramics industry. Companies are now forced to adapt quickly or risk being left behind in a rapidly changing global market.
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