On October 9, the General Administration of Foreign Trade of Saudi Arabia issued a paper announcement, referring directly to Chinese goods - the official anti-dumping law on the covers of beverages originating in China, the red bull, the coke, the bubble water is the most commonly used small size covers!
China is one of the leading producers of aluminum caps for beverage cans worldwide. Domestic large-scale aluminum cover manufacturers generally have an annual production capacity of more than 10 billion pieces. Their products are not only supplied to the domestic market, but also exported to Southeast Asia, the Middle East, Africa and other regions.
Saudi Arabia is an important destination for China's aluminum cover exports, and by 2024, China's total volume of drinks exported to Saudi Arabia reached 8,6 million, accounting for 35% of the local market share, mainly for local beverage factories Red Bull, Coca-Cola and other products packaging.
The Saudi Foreign Trade Administration said in the announcement that the case originated from the applications of local companies.
The applicant believes that the price of aluminum covers exported from China is lower than the normal value, causing a shock to the local related industries.
The announcement clarified the scope of the investigation —— the diameter of 28 mm to 38 mm of alcoholic beverages, covering the specifications used for the vast majority of mainstream beverages, and set a 90-day investigation period, during which the production and sales data of both companies will be collected to assess whether there is any dumping and damage.
When the news came, in the workshop of an aluminum cover production enterprise in Guangdong, the machine was still operating at high speed.
The company’s annual exports to Saudi Arabia amount to approximately 1.2 billion units, accounting for 15% of its total exports. The head of the company organized the research team for the first time to gather the price and cost data on Saudi exports over the past three years, and contacted the industry associations for support.
They did not suspend exports, but prepared relevant supporting materials in accordance with Saudi Arabia's requirements to explain the rationality of product pricing-factors such as fluctuations in the price of raw materials aluminum ingots and reduced costs by large-scale production are all important basis for pricing.
The China Chamber of Commerce for Import and Export of Minerals, Metals and Chemicals acted quickly and organized 12 major export enterprises to hold online meetings.
The staff of the Chamber of Commerce interpreted the procedures and rules of the anti-dumping investigation, reminded companies to keep key documents such as production records, export contracts, and customs declarations. At the same time, they recommended that companies strengthen communication with Saudi importers to understand the actual needs and feedback of the local market.
Some companies also plan to jointly hire lawyers familiar with Middle East trade regulations to participate in follow-up investigations to ensure that their rights and interests are protected.
Other areas of cooperation in China-Saudi trade were not affected by this case.
In 2024, the bilateral trade volume between China and Saudi Arabia will reach US$120 billion, of which cooperation in energy, infrastructure, electronics and other fields continues to deepen.
The local beverage production enterprises in Saudi Arabia are highly dependent on China's aluminum cover.
Some enterprises have submitted explanations to the General Administration of Foreign Trade of Saudi Arabia, saying that the quality of aluminum caps in China is stable and the supply is timely. If anti-dumping measures are implemented, it may lead to an increase in local beverage production costs and affect market supply.
Chinese aluminum cap companies are also actively adjusting their export strategies.
A company in Zhejiang has begun to expand the market in other countries in the Middle East, establishing ties with beverage factories in the UAE and Qatar, while increasing domestic market development efforts, and signing cooperation agreements with the newly established bubble water brand.
The company has also invested in improving production processes and developing thinner and better airtight aluminum lid products. By increasing the added value of products, it will enhance competitiveness in the international market and reduce its reliance on single price competition.
Industry data show that the production technology of China's aluminum covers has reached the international advanced level.
Domestic companies generally adopt automated production lines to achieve digital control throughout the entire process from aluminum stamping and surface treatment to quality inspection, and the product pass rate has stabilized at more than 99.8%.
Some companies have also obtained international food safety certification, products can be supplied directly to overseas factories of world-renowned beverage brands, which provides technical support for responding to trade investigations.
The investigation by the Saudi Foreign Trade Administration is still in progress. China companies maintain close communication with relevant institutions and submit required materials in a timely manner.
Although this filing brings short-term challenges, it also promotes industry reflection-how to better adapt to the trade rules of different countries and how to enhance international competitiveness through technological innovation and brand building.
Under the background of globalization, trade friction is a test that enterprises may encounter in their growth, and active response and proactive adjustment will eventually open up a broader development space for the industry.
The long-term cooperation between the two countries has a solid foundation, and we believe that through rational communication and professional response, the two sides can find solutions that take into account the interests of all sides, so that trade continues to be the bond of cooperation between the two countries.
China is one of the leading producers of aluminum caps for beverage cans worldwide. Domestic large-scale aluminum cover manufacturers generally have an annual production capacity of more than 10 billion pieces. Their products are not only supplied to the domestic market, but also exported to Southeast Asia, the Middle East, Africa and other regions.
Saudi Arabia is an important destination for China's aluminum cover exports, and by 2024, China's total volume of drinks exported to Saudi Arabia reached 8,6 million, accounting for 35% of the local market share, mainly for local beverage factories Red Bull, Coca-Cola and other products packaging.
The Saudi Foreign Trade Administration said in the announcement that the case originated from the applications of local companies.
The applicant believes that the price of aluminum covers exported from China is lower than the normal value, causing a shock to the local related industries.
The announcement clarified the scope of the investigation —— the diameter of 28 mm to 38 mm of alcoholic beverages, covering the specifications used for the vast majority of mainstream beverages, and set a 90-day investigation period, during which the production and sales data of both companies will be collected to assess whether there is any dumping and damage.
When the news came, in the workshop of an aluminum cover production enterprise in Guangdong, the machine was still operating at high speed.
The company’s annual exports to Saudi Arabia amount to approximately 1.2 billion units, accounting for 15% of its total exports. The head of the company organized the research team for the first time to gather the price and cost data on Saudi exports over the past three years, and contacted the industry associations for support.
They did not suspend exports, but prepared relevant supporting materials in accordance with Saudi Arabia's requirements to explain the rationality of product pricing-factors such as fluctuations in the price of raw materials aluminum ingots and reduced costs by large-scale production are all important basis for pricing.
The China Chamber of Commerce for Import and Export of Minerals, Metals and Chemicals acted quickly and organized 12 major export enterprises to hold online meetings.
The staff of the Chamber of Commerce interpreted the procedures and rules of the anti-dumping investigation, reminded companies to keep key documents such as production records, export contracts, and customs declarations. At the same time, they recommended that companies strengthen communication with Saudi importers to understand the actual needs and feedback of the local market.
Some companies also plan to jointly hire lawyers familiar with Middle East trade regulations to participate in follow-up investigations to ensure that their rights and interests are protected.
Other areas of cooperation in China-Saudi trade were not affected by this case.
In 2024, the bilateral trade volume between China and Saudi Arabia will reach US$120 billion, of which cooperation in energy, infrastructure, electronics and other fields continues to deepen.
The local beverage production enterprises in Saudi Arabia are highly dependent on China's aluminum cover.
Some enterprises have submitted explanations to the General Administration of Foreign Trade of Saudi Arabia, saying that the quality of aluminum caps in China is stable and the supply is timely. If anti-dumping measures are implemented, it may lead to an increase in local beverage production costs and affect market supply.
Chinese aluminum cap companies are also actively adjusting their export strategies.
A company in Zhejiang has begun to expand the market in other countries in the Middle East, establishing ties with beverage factories in the UAE and Qatar, while increasing domestic market development efforts, and signing cooperation agreements with the newly established bubble water brand.
The company has also invested in improving production processes and developing thinner and better airtight aluminum lid products. By increasing the added value of products, it will enhance competitiveness in the international market and reduce its reliance on single price competition.
Industry data show that the production technology of China's aluminum covers has reached the international advanced level.
Domestic companies generally adopt automated production lines to achieve digital control throughout the entire process from aluminum stamping and surface treatment to quality inspection, and the product pass rate has stabilized at more than 99.8%.
Some companies have also obtained international food safety certification, products can be supplied directly to overseas factories of world-renowned beverage brands, which provides technical support for responding to trade investigations.
The investigation by the Saudi Foreign Trade Administration is still in progress. China companies maintain close communication with relevant institutions and submit required materials in a timely manner.
Although this filing brings short-term challenges, it also promotes industry reflection-how to better adapt to the trade rules of different countries and how to enhance international competitiveness through technological innovation and brand building.
Under the background of globalization, trade friction is a test that enterprises may encounter in their growth, and active response and proactive adjustment will eventually open up a broader development space for the industry.
The long-term cooperation between the two countries has a solid foundation, and we believe that through rational communication and professional response, the two sides can find solutions that take into account the interests of all sides, so that trade continues to be the bond of cooperation between the two countries.