August 26, Chile has launched an anti-dumping investigation into Chinese exporters of enameled ceramic tiles, the second blow to domestic ceramics manufacturers in the South American market since a similar case was brought by Argentina in late July.
China’s Ministry of Commerce said dozens of Chinese ceramics producers and as much as $10 million worth of trade could be affected should an anti-dumping duty be imposed.

Chinese ceramics enterprises are already struggling with falling demand back home, as the government’s property curbs start to bite into the real estate market.

Market Access Blocked

Chinese ceramics enterprises have been expanding rapidly in new markets including Brazil, Argentina and Chile after exports to traditional markets in Europe collapsed on an anti-dumping duty of up to 73% by officials in Brussels in March.

But Chinese manufacturers’ cost advantages are hurting enterprises in the new markets, stirring up resistance from local firms.

“I think we [Chinese ceramics enterprises] should stick together and challenge those anti-dumping charges before further damage is done; I’m concerned that if Argentina wins the case, other Latin American countries will follow suit,” Lan Weibin, director of the China Ceramics Industrial Association’s Foshan branch, said earlier this month.
“It’s taken these Chinese manufacturers such a long time to nurture new markets, and now access to those markets may be blocked,” Lan cautioned.

According to Lan, more and more countries have started to block ceramics imports from China in recent years, including India, Thailand and South Korea, leaving Chinese exporters no option except to explore business opportunities in Latin American countries.

In the first half of this year, China’s ceramics exports to Latin America were worth $490 million, up 39.3% from the same period last year, the first time export volumes to the continent were higher than those to Europe, China Business News said, citing unsourced data.