Turkey this operation, directly embarrassed me. awakening, people directly changed the rules. say from today, our China's link chain, if you want to turn around the EU and come in? yes, a ton first to pay $ 1,200. no notice, no buffer, is so hard.
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The case dates back to 2009, when Turkey filed the first dumping charges against China’s connector chain, claiming that Chinese products hit the domestic market with too low prices.
In 2010, they formally decided to impose an anti-dumping duty of $1,200 per tonne, which was subsequently reviewed in 2016 and 2022, and they continued to uphold the ruling that the “tariff knife” had been suspended above the trade in the Middle East for more than a decade.
Faced with this situation, Chinese enterprises did not sit still and wait for death, and came up with a way to re-export through the EU, exporting their goods to EU countries first, and then changing their labels into Turkey. This set of operations has worked well and lasted for many years.
Yet data doesn't lie. In 2024, Turkey found that China's exports of hinged chains to the EU surged by 300%, while Turkey's imports of similar products from the EU surged by 280%, but EU domestic consumption only increased slightly by 2%. This is obviously not a change in the natural demand of the market, but the result of large-scale entrepot trade.
So Turkey quietly launched a counter-evasion investigation in May, and made a final decision in August, announcing that transfer products were also included in the scope of taxation.
Even more cleverly, they “differentiated” the EU member states, leaving Spain alone. The reason is not difficult to understand is that Spain is the few countries in the EU that still have full connector chain production capacity, and exports account for more than 60%. Opening the green light to Spain, both reassured the main EU suppliers and released a signal to Chinese companies: either they are really investing in Spain to build a factory, or they are fined.
The direct consequence of this raid is the overall increase in procurement costs in the Turkish market. Turkey's annual demand exceeds 150,000 tons, but its local production capacity is less than 80,000 tons, and it has long relied on imports to fill the gap.
Today, a tonne plus $1,200 tax is equivalent to a cost increase of 15%-20%, while Turkey’s inflation rate has reached 24%, and the price flow downstream will inevitably create greater social pressure.
Fishermen complain that fishing gear is too expensive, construction companies complain bitterly, and rising costs make it difficult for many projects to maintain profits. Once downstream enterprises shut down on a large scale, the pressure of public opinion from the Turkish government is probably no less than the trade pressure from China.
Even the EU has been implicated. The Port of Rotterdam in the Netherlands handles the transshipment business of 40,000 tons of Chinese hinged chains every year. Now there is suddenly no market, with a backlog of warehouses and losses in return shipments. Logistics providers call "the business has been cut in half". Such unilateral measures not only hit Chinese exporters, but also disrupt global supply chains, adding additional transportation costs and uncertainty.
In the short term, some companies will choose to switch to Southeast Asia or North Africa, although transportation costs increase, but still pay higher tariffs than pay.
Some enterprises also choose technological innovation, upgrade ordinary chains to "intelligent chains" and evade anti-dumping duties with new customs codes. The longer-term approach is to directly invest and build factories in Turkey or Spain to truly realize localized production and fundamentally cross trade barriers. Behind these strategies is the inevitable trend that China's manufacturing industry continues to climb upstream the value chain.
Looking at the world, this is not an isolated event. The United States has long been using tariff weapons frequently, and the EU is also staring at Chinese steel that passes through Serbia. It can be said that the world has entered a new era of trade protectionism, where countries compete against each other in a "tariff match".
However, can protectionism really protect the industry? Turkey may win a breathtaking opportunity for local in the short term, but long-term dependence on tariffs will only make companies lose their upgrade momentum and prevent them from participating in international competition.
Turkey’s sudden tax hike, which appears to be to safeguard industrial security, actually reflects the deep game of global industrial chain restructuring.
The higher the trade barriers, the losers are often ordinary consumers and downstream industries.The fishermen and construction workers in Istanbul are the most innocent “payers” in this game.
Trouble see the official gentlemen in the upper right corner and click on "attention", which is both convenient for you to discuss and share, but can bring you more quality content, thank you for your support!
The case dates back to 2009, when Turkey filed the first dumping charges against China’s connector chain, claiming that Chinese products hit the domestic market with too low prices.
In 2010, they formally decided to impose an anti-dumping duty of $1,200 per tonne, which was subsequently reviewed in 2016 and 2022, and they continued to uphold the ruling that the “tariff knife” had been suspended above the trade in the Middle East for more than a decade.
Faced with this situation, Chinese enterprises did not sit still and wait for death, and came up with a way to re-export through the EU, exporting their goods to EU countries first, and then changing their labels into Turkey. This set of operations has worked well and lasted for many years.
Yet data doesn't lie. In 2024, Turkey found that China's exports of hinged chains to the EU surged by 300%, while Turkey's imports of similar products from the EU surged by 280%, but EU domestic consumption only increased slightly by 2%. This is obviously not a change in the natural demand of the market, but the result of large-scale entrepot trade.
So Turkey quietly launched a counter-evasion investigation in May, and made a final decision in August, announcing that transfer products were also included in the scope of taxation.
Even more cleverly, they “differentiated” the EU member states, leaving Spain alone. The reason is not difficult to understand is that Spain is the few countries in the EU that still have full connector chain production capacity, and exports account for more than 60%. Opening the green light to Spain, both reassured the main EU suppliers and released a signal to Chinese companies: either they are really investing in Spain to build a factory, or they are fined.
The direct consequence of this raid is the overall increase in procurement costs in the Turkish market. Turkey's annual demand exceeds 150,000 tons, but its local production capacity is less than 80,000 tons, and it has long relied on imports to fill the gap.
Today, a tonne plus $1,200 tax is equivalent to a cost increase of 15%-20%, while Turkey’s inflation rate has reached 24%, and the price flow downstream will inevitably create greater social pressure.
Fishermen complain that fishing gear is too expensive, construction companies complain bitterly, and rising costs make it difficult for many projects to maintain profits. Once downstream enterprises shut down on a large scale, the pressure of public opinion from the Turkish government is probably no less than the trade pressure from China.
Even the EU has been implicated. The Port of Rotterdam in the Netherlands handles the transshipment business of 40,000 tons of Chinese hinged chains every year. Now there is suddenly no market, with a backlog of warehouses and losses in return shipments. Logistics providers call "the business has been cut in half". Such unilateral measures not only hit Chinese exporters, but also disrupt global supply chains, adding additional transportation costs and uncertainty.
In the short term, some companies will choose to switch to Southeast Asia or North Africa, although transportation costs increase, but still pay higher tariffs than pay.
Some enterprises also choose technological innovation, upgrade ordinary chains to "intelligent chains" and evade anti-dumping duties with new customs codes. The longer-term approach is to directly invest and build factories in Turkey or Spain to truly realize localized production and fundamentally cross trade barriers. Behind these strategies is the inevitable trend that China's manufacturing industry continues to climb upstream the value chain.
Looking at the world, this is not an isolated event. The United States has long been using tariff weapons frequently, and the EU is also staring at Chinese steel that passes through Serbia. It can be said that the world has entered a new era of trade protectionism, where countries compete against each other in a "tariff match".
However, can protectionism really protect the industry? Turkey may win a breathtaking opportunity for local in the short term, but long-term dependence on tariffs will only make companies lose their upgrade momentum and prevent them from participating in international competition.
Turkey’s sudden tax hike, which appears to be to safeguard industrial security, actually reflects the deep game of global industrial chain restructuring.
The higher the trade barriers, the losers are often ordinary consumers and downstream industries.The fishermen and construction workers in Istanbul are the most innocent “payers” in this game.