Fluorosilicon Association Urges Industry to Face Challenges
In November of last year, two refrigerant manufacturers under China National Chemical Corporation (ChemChina) were targeted in a "337 investigation" initiated by Ingres Chemical Co., Ltd. from the United States and a UK-based company. This move has sparked widespread concern within the industry. The U.S. International Trade Commission (ITC) has now completed its preliminary review, with final results expected by late March. The applicant is seeking a general exclusion order, which would mean that if ChemChina loses the case, not only would their products be banned from the U.S. market, but other Chinese companies producing similar refrigerants could also face the same fate.
In early March, the China Fluorosilicon Association took urgent action, stepping in to coordinate efforts among industry players. On December 21, 2007, the ITC launched a 337 investigation into R-134a refrigerant following a petition from British Ingredifluor Chemical Co., Ltd. and Ineos Fluorochemicals of Los Angeles, USA. The investigation covers several types of refrigerants, including 1,1,1,2-tetrafluoroethane, R-134a, HFA-134a, HFC-134a, and others. Two Chinese companies — China National Chemical Industry Modern Environmental Protection Chemicals (Xi'an) Co., Ltd. and Ningbo (Group) Co., Ltd. — are listed as respondents.
The applicants are requesting both a general exclusion order and a temporary stop-sale order. Although the lawsuit was filed against specific companies, it threatens the entire Chinese refrigerant industry. According to Mei Shengfang, secretary-general of the China Fluorosilicon Association, the U.S. is one of the key markets for Chinese refrigerant exports. Whether ChemChina wins this case will significantly impact the future of the industry.
To address the issue, the association organized the first major consultation session for leading refrigerant manufacturers, resulting in a unified strategy. While only two companies under ChemChina have been directly involved, the association believes the threat extends to the whole sector. With strong financial resources and confidence in legal defenses, the industry is preparing a coordinated response. The association has also decided to hire legal experts to help develop countermeasures based on the investigation's progress.
The "337 investigation" has become a significant non-tariff trade barrier, known for its low threshold for filing and high costs for defense. It has quickly become a major obstacle for Chinese exports, even surpassing anti-dumping cases in some areas. In recent years, the number of 337 investigations targeting Chinese companies has risen sharply, especially in electronics and chemical sectors. The current case involving two U.S.-based refrigerant manufacturers is just one example of this growing trend.
Under U.S. law, if the ITC finds that imported goods infringe on U.S. intellectual property rights, it can impose remedies such as limited or general exclusion orders, stop orders, or confiscation orders. The current application seeks a general exclusion order, which would block all similar infringing products from entering the U.S. market regardless of origin. This poses a serious threat to Chinese exports.
Legal experts warn that the "337 investigation" will likely be the biggest challenge for Chinese exports to the U.S. over the next decade, far more than traditional anti-dumping lawsuits. As a result, it is crucial for the Chinese oil and chemical industries to closely monitor the situation and develop effective strategies to respond.
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