Japan’s chemical industry on alert as Chinese imports surge

Japanese chemical makers are sounding the alarm over a sharp rise in imports from China. The influx is putting pressure on domestic producers, who say they are losing market share and facing falling prices. The concern centers on basic chemicals and intermediate materials — the building blocks used to make plastics, coatings, and other industrial goods. These products are traded in large volumes, so even small price gaps can quickly shift buyers from one supplier to another. Chinese producers have expanded capacity in recent years, allowing them to offer lower prices. Japanese firms, with older plants and higher energy costs, struggle to match those prices. Industry groups have asked the government to monitor the situation. They want to determine whether the imports are being sold below fair market value, a practice known as dumping. If proven, dumping can lead to tariffs under international trade rules. So far, no formal action has been taken. But the debate highlights a growing challenge for Japan: how to protect key industries while keeping trade open with its largest trading partner.