How does China's resorcinol trade policy affect domestic pricing and import competition?

How does China's resorcinol trade policy affect domestic pricing and import competition?
China has maintained antidumping duties on resorcinol from Japan and the US since 2013, with rates ranging from 30.1% to 40.5%. These duties were extended in 2018 and again in 2025, effectively shielding domestic producers like Zhejiang Longsheng, which controls over 80% of the domestic market. The policy has reduced import volumes—2022 imports fell 33% year-on-year to 2,400 tonnes—while exports also dropped 27% to 8,800 tonnes. Japanese producers, particularly Sumitomo, have lost significant market share, with estimated annual losses exceeding $300 million. This protectionist framework has enabled domestic capacity expansion and price stability, though it also creates a two-tier market where domestic prices run above international levels. The 2025 extension signals continued policy support for local manufacturers as they invest in higher-purity pharmaceutical-grade products.