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On February 6, the U.S. Department of Commerce announced that it would partially lift anti-dumping tariffs 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 anti-dumping duty drop dramatically from 249.39% to just 17.05%, while other firms faced a much higher rate of 329.33%. This development signals a potential return of Fuxing’s products to the U.S. market, once the second-largest export destination for China’s saccharin industry. For Chinese saccharin producers, this is a crucial opportunity after being completely excluded from the U.S. market in 2003 due to high anti-dumping duties imposed by the U.S. government.
Despite this breakthrough, the broader question remains: can Chinese saccharin companies finally escape the long-standing shadow of anti-dumping investigations? Saccharin, a fine chemical product widely used in beverages, food, cosmetics, and even medical diagnostics, has made China the world’s largest producer and exporter. With 70-80% of its output destined for international markets, China should theoretically have strong pricing power. Yet, instead of enjoying a monopoly, it has been repeatedly targeted by anti-dumping measures.
China’s saccharin industry was the first to face such scrutiny globally. Since 1979, Chinese companies have endured a series of anti-dumping investigations, particularly in the EU and the U.S. In 1993, the only U.S. producer of saccharin, PMC Corporation, sued Chinese exporters, leading to anti-dumping duties as high as 276.62%. Although Chinese firms later won a case at the International Trade Center, the U.S. re-imposed heavy tariffs in 2003, effectively shutting out Chinese saccharin from the American market.
Following the loss of the U.S. market, India became China’s second-largest export destination. By 2004, exports to India had surpassed those to the U.S. However, in July 2023, India launched its own anti-dumping investigation into Chinese saccharin, casting uncertainty over future trade. These repeated legal challenges have significantly impacted China’s sweetener exports. According to customs data, from January to June 2005, China’s saccharin exports fell by 22.45% year-on-year to 8,159 tons, with export value dropping by 17.06% to $23.69 million.
Why do Chinese saccharin producers, who could dominate the global market, continue to face dumping allegations? Several factors contribute to this issue. The Chinese government has implemented export quotas and price controls to curb disorderly competition. However, enforcement is weak, and violations often go unpunished. As a result, companies engage in price wars, undermining the very regulations meant to protect them. Even though the top five manufacturers control nearly 88% of China’s saccharin exports, they struggle to coordinate and maintain stable prices.
In interviews, executives from major companies often blame each other for the low-cost competition. Only Shanghai Fuxing, the sole joint venture in the industry, has managed to export at a higher price. Despite their market dominance, these five companies remain divided, unable to unite and control the international market. The ongoing internal competition continues to weaken their collective position, leaving them vulnerable to external pressures.
The story of China’s saccharin industry reflects a broader challenge: how to balance competition, regulation, and international trade. While the recent U.S. tariff reduction offers a glimmer of hope, the road ahead remains uncertain. For now, the industry must navigate a complex web of trade barriers, internal conflicts, and global market dynamics—each step forward coming at a high cost.
October 04, 2025