As an important export market for China’s biodiesel, the EU’s anti-dumping policy will greatly affect the export cost and competitiveness of Chinese enterprises, and have a greater negative impact on China’s staggering biodiesel industry.
Overview of impacts
First of all, it threatens the development space and survival space of some enterprises. Blocked exports and rising costs for Chinese biodiesel export enterprises that rely on the European market may face sales difficulties in the short term, which directly affects the profit margins and benign operation ability of enterprises.
Second, competition in the international market has intensified. The implementation of anti-dumping duties is likely to prompt local EU biodiesel producers to increase their productivity to fill the market space left by restrictions on Chinese products, further reducing the international market share of Chinese companies.
Third, technology and innovation have become the new driving force. In the face of market challenges, China’s biodiesel companies are forced to increase R&D investment, improve product performance and competitiveness, explore diversified application fields of green energy, expand non-traditional markets, and offset the pressure caused by anti-dumping to a certain extent.
The impact of the EU’s anti-dumping measures on China’s biodiesel industry chain
After the introduction of the European Commission’s anti-dumping temporary tariffs, due to the market’s early expectations, the main companies in the industry were not alarmed.
Enterprises such as Haixin Energy, Jiaao Environmental Protection, Luculent Environment, and Excellence New Energy have said that the temporary tariffs imposed by the EU have had a certain impact on the company’s biodiesel exports to the EU market in the short term, and the overall impact is limited in the long run.
For China’s biodiesel industry, the loss of this important market in the EU in the short term will inevitably hit its exports. Although China has a large domestic market to support it, the loss of revenue and market share caused by the loss of the EU market in the short term is difficult to ignore. To cope with this situation, Chinese biodiesel exporters may need to find alternative markets or re-evaluate their production and business strategies to adapt to the new international trade environment.
For the EU market, the imposition of additional anti-dumping duties could lead to an increase in the cost of biodiesel imports, which in turn will push up prices in the local market. While this move will help protect local industries in the short term, it may affect the EU’s renewable energy targets in the long term due to reduced supply. Especially given the EU’s key role in the green transition, how to maintain support for clean energy and supply chain stability while protecting local industries is a major challenge.