EU Wields "Dual Anti-Dumping" Stick Against Chinese Candles, How Can Lighting Enterprises Survive and Seek a Way Out?

EU Wields "Dual Anti-Dumping" Stick Against Chinese Candles, How Can Lighting Enterprises Survive and Seek a Way Out?

[Comprehensive Report] News recently came from Brussels that the European Commission has officially initiated anti-dumping and countervailing duty investigations into Candle products originating from China. This is another "red light" shone on the Chinese candle industry by the European market, following the imposition of high anti-dumping duties on Chinese candles years ago. This move undoubtedly presents severe challenges and uncertainties for Chinese candle enterprises actively working to expand overseas markets.

Background: The Resurgence of Trade Protectionism

It is reported that this investigation was applied for and initiated by some local EU candle producers. The complainants allege that candles exported from China to the EU are involved in "dumping" and have received "unfair subsidies" from the government, leading to prices significantly lower than local EU products, severely impacting the local industry, and causing substantive harm.

If the investigation ultimately rules affirmatively, the EU will likely impose high anti-dumping and countervailing duties on the relevant Chinese candle products, with tax rates potentially reaching several dozen percentage points. For many Chinese candle factories that primarily rely on price advantages to hold their market share, this could be a fatal blow.

Industry Impact: The "Price Weapon" Instantly Becomes a "Cost Shackle"

"The news shocked and worried the entire industry," Mr. Wang, the head of a Zhejiang-based candle enterprise with annual exports exceeding tens of millions of USD, told our reporter. "Our profit margins are already very thin. If tariffs increase substantially, our products will completely lose competitiveness and we may be forced to exit the European market."

China is the world's largest producer and exporter of candles, and the EU is one of its most important export markets. For a long time, cost-effective Chinese candles have occupied a significant share of shelves in European supermarkets and home goods stores. However, the business model reliant on low-price competition also makes the Chinese candle industry particularly vulnerable when facing international trade friction. This "dual anti-dumping" investigation acts like a mirror, revealing the deep-seated hidden worries long present in the Chinese candle industry.

Expert Diagnosis: How Can Chinese Candle Enterprises Find a Way Out?

Faced with the onslaught of trade barriers, should Chinese candle enterprises wait for doom or actively seek change? Industry experts and seasoned practitioners point out that the path to breaking through lies in shifting from a "price war" to a "value war," adopting multiple approaches to build new core competitiveness.

1. Active Legal Defense, Safeguarding Legitimate Rights
"The top priority is to unite and actively respond to the lawsuit," said Zhang Wen, a senior trade remedy lawyer at a Beijing law firm. She recommends that relevant enterprises, under the guidance of the China Chamber of Commerce for Import & Export of Light Industrial Products & Arts-Crafts and professional lawyers, quickly form response teams, complete the questionnaires, and prepare detailed financial and data materials to prove that their production, operation, and export processes comply with market economy rules and do not involve so-called "malicious dumping" or "illegal subsidies." "The success rate of a collective defense is much higher than going it alone."

2. Market Diversification, Exploring "New Blue Oceans"
"You can't put all your eggs in one basket," said Bai Ming, Deputy Director of the International Market Research Institute at the Chinese Academy of International Trade and Economic Cooperation. Enterprises should accelerate the exploration of emerging markets such as North America, Japan, South Korea, ASEAN, and countries along the "Belt and Road" to disperse the risk of a single market. Simultaneously, they can focus on the rising "self-pleasure economy" and "ambiance consumption" within China to tap domestic demand potential.

3. Product Premiumization and Differentiation, Moving Away from Low-Quality and Low-Price
"We must make customers pay for 'value,' not 'price,'" shared Ms. Li, General Manager of a Guangdong factory specializing in scented and designer candles. Her company has consistently invested in R&D in recent years, developing high-value-added products using eco-friendly soy wax and essential oils, and collaborating with designers to launch shaped candles with cultural connotations. "Even if there are tariffs in the future, because our products are unique and of high quality, customers are still willing to accept them."

4. Global Layout, "Going Out" to Produce
To fundamentally circumvent trade barriers, some large, capable enterprises could consider establishing overseas production bases in regions such as Southeast Asia or Eastern Europe. By transferring part of their production capacity to third countries and utilizing local rules of origin policies, they can indirectly enter the EU market. While this is a medium to long-term strategy, it is an effective means to counter trade protectionism.

5. Brand Building, Mastering Discourse Power
For a long time, Chinese candles have primarily been involved in OEM (Original Equipment Manufacturing), with profits firmly controlled by overseas brand owners. Experts urge that enterprises should gradually transition from the OEM model to OBM (Original Brand Manufacturing). Through cross-border e-commerce, social media marketing, and other methods, they can directly reach end consumers, build brand loyalty, and thus master pricing power and market discourse power.

Conclusion

The EU's "dual anti-dumping" investigation is another growing pain encountered by Chinese manufacturing in the process of globalization. For the Chinese candle industry, this is both a crisis and an opportunity forcing the industry to transform and upgrade. Only by abandoning the path dependence on low cost and low price, and shifting towards a high-quality development path centered on quality, design, brand, and innovation, can Chinese candles illuminate others while also safeguarding their own brilliance amidst the storms of the global market.

Zhongya candle factory
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Email: Betty@kangdecandle.com