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On February 6, the U.S. Department of Commerce announced a partial reduction in anti-dumping duties on Chinese sweeteners, marking a significant shift for the industry. Notably, Shanghai Fuxing Chemical Co., Ltd., one of China’s top five sugar refinery companies, saw its tariff rate drop from 249.39% to 17.05%, while other firms faced a much higher rate of 329.33%. This change signals a potential return of Shanghai Fuxing’s products to the U.S. market, once the second-largest export destination for China’s saccharin producers. For Chinese saccharin companies, this is a crucial opportunity following their complete exclusion from the U.S. market in 2003 due to high anti-dumping duties.
Saccharin, a fine chemical widely used in beverages, pharmaceuticals, and cosmetics, has long been dominated by China, which produces over 70-80% of the global supply. Despite this dominance, Chinese saccharin exports have repeatedly faced anti-dumping investigations. The product was China’s first target of such measures, with the EU launching an investigation as early as 1979. Over the years, the U.S. has also imposed steep anti-dumping duties, effectively cutting off China’s access to that market. Since then, India has become China’s largest export market for saccharin, but even there, recent anti-dumping investigations have raised concerns about future trade.
The impact of these trade barriers has been severe. According to customs data, China’s saccharin exports fell by 22.45% year-on-year in the first half of 2005, with total exports reaching 8,159 tons and a value of $23.69 million. Despite efforts by the government and industry associations to regulate exports through quotas and price controls, enforcement has been weak, leading to ongoing price wars among domestic producers.
Industry insiders point out that while regulations exist, penalties for violations are minimal, making it difficult to curb undercutting. Some companies, like Shanghai Fuxing, have managed to maintain higher export prices, largely due to their joint venture status. However, the five largest manufacturers—responsible for nearly 88% of China’s saccharin exports—still struggle to coordinate and set stable international prices.
This lack of unity has led to a cycle of self-destructive competition, where companies undercut each other, making it easier for foreign buyers to exploit price differences. As one executive noted, “So far, no company has been punished for price wars.†This internal conflict continues to undermine the industry’s ability to compete effectively on the global stage, despite its dominant position in production.
October 04, 2025