EU Plans to Introduce New Rules Banning 100% Procurement of Chinese Products! Asahi Kasei and Teijin Reach Absorption Merger Agreement

International News Guide

Raw Material News - EU Plans to Introduce New Rules Banning Enterprises from 100% Procuring Chinese Products

Automotive News - First China-New Zealand NEV Dialogue Held in Wellington, New Zealand

Medical News - CS Laboratory Adds Two New Instruments! Medical Plastic Additive Testing Aligns with New USP 661.1 Standard

Macroeconomic News - MOFCOM: Chinese Government Conducts Export Control of Rare Earth-Related Items in Accordance with Laws and Regulations

Price Information - CNY/USD Central Parity Rate Stands at 7.0733, Up 21 Pips

Details of International News

Starting from January 1, 2026, the EU will abolish the duty exemption for goods worth 150 euros! The tariff is as high as 38%!

Starting from January 1, 2026, the European Union will eliminate the de minimis exemption for packages valued at less than 150 euros (approximately 1236 yuan).

At that time, all product packages, even those worth only a few euros, will be subject to standard tariffs for the first time, with total tariffs reaching up to 38%.

Implementation Time:Effective from January 1, 2026, a "simplified temporary customs fee" will be introduced in the first quarter as a transitional measure. This includes the imposition of fixed or proportional tariffs on low-value parcels, with specific rates yet to be finalized.Possibly a 2 Euro processing fee plus actual customs duties.。

Tariff rate:After the exemption is canceled, Chinese exporters will need to pay for each package under 150 euros:Standard tariff + VAT + possible handling feesStandard tariffs (generally 5-12%, depending on the product, e.g., clothing 10%, electronics 14%); VAT (averaging 21%, calculated from 1 euro); handling fee (possibly 2 euros).

Permanent Reform:By 2028, with the launch of the Centralized EU Customs Data Hub, the €150 threshold will be completely removed from legislation, enabling digital customs processing. This will cover all imports, including higher value goods.

The EU plans to introduce new regulations to prohibit companies from sourcing 100% of their products from China.

The European Commission announced a plan on Wednesday to enhance economic security by improving existing trade measures and adopting new defense mechanisms, in order to increase the EU's resilience in the face of threats such as the shortage of rare earth supplies.

The European Commission has proposed a so-called "Economic Security Program" aimed at helping the group of 27 member states cope with U.S. tariffs and Chinese restrictions, which have led to disruptions in the supply of critical rare earths and chips.

The European Commission also plans to restrict the export of recyclable rare earth waste and battery waste starting in early 2026 to help ensure the supply of crucial raw materials needed for electric vehicles, wind turbines, and semiconductors.

The United States has launched the third sunset review investigation on anti-dumping and countervailing measures concerning Chinese oil pipes.

According to the China Trade Remedy Information Network, on December 1, 2025, the U.S. Department of Commerce announced the initiation of the third sunset review of anti-dumping and countervailing duties on Oil Country Tubular Goods imported from China. At the same time, the U.S. International Trade Commission (ITC) initiated the third sunset review of industry injury related to anti-dumping and countervailing duties on Oil Country Tubular Goods imported from China, examining whether the removal of existing anti-dumping and countervailing measures will likely lead to the continuation or recurrence of substantial harm to the domestic industry within a reasonably foreseeable time. Interested parties are required to register for participation with the U.S. Department of Commerce within 10 days of the announcement. Interested parties must submit their responses to the U.S. International Trade Commission by December 31, 2025, and submit comments on the adequacy of the responses by February 6, 2026.

4. The US ITC issues a final determination on Section 337 regarding flash-spun nonwoven materials and downstream products.

According to the China Trade Remedy Information Network, on December 3, 2025, the United States International Trade Commission (ITC) announced that it has made a partial final determination under Section 337 regarding certain flash-spun nonwoven materials and products containing the same (Investigation No. 337-TA-1424). The ITC decided not to review the initial determination (No. 46) made by the administrative law judge on September 29, 2025. As a result, the named respondents, Weifang Konzer Safety Protective Equipment Co., Ltd. of China, TOBO Group of Shanghai, China, Jiangsu Tubo New Material Co., Ltd. of China, Hangzhou Several Sets of Electronic Commerce Co., Ltd. of China, and Hangzhou Qiao Shell Digital Technology Co., Ltd. of China, are considered defaulting respondents.

5. Involving a Chinese factory! Absorbing and merging Asahi Kasei's wholly-owned subsidiary.

Plastic giant Asahi Kasei Teijin has reached an agreement to carry out an absorption-type merger: Asahi Kasei's wholly-owned subsidiary, Asahi Kasei Advance, will merge with Teijin's wholly-owned subsidiary, Teijin Frontier.Teijin Frontier will continue to exist as a joint venture between Asahi Kasei (holding 20% of the shares) and Teijin (holding 80% of the shares), effective October 1, 2026.

Arkema's polyester resin plant in Italy has obtained ISCC+ certification.

Arkema announced that its specialty polyester resin production site in Gissi, Italy has successfully obtained ISCC+ certification, aligning with Arkema's global quality balance roadmap. This supports customers in implementing more sustainable polyurethane system solutions in markets such as construction, packaging, and automotive.

"This announcement marks an important milestone for Arkema—now all our global advanced liquid resin production sites (covering acrylic, polyester, alkyd, and polyamide resins) have obtained ISCC+ certification," said Franck CHARRIER, Global Director of Advanced Liquid and Powder Resins. "The certification of the Gissi site brings us closer to our core goal: optimizing product production methods and supporting the industry's vision of reducing its carbon footprint."

7. Monument Chemical launches Poly-CO₂ product line.

Recently, Monument Chemical officially launched the first commercial production project of renewable carbon-based polyols in Brandenburg, Kentucky, USA. This new polycarbonate ether (PCE) polyol product line is named Poly-CO₂, and its core process originates from Econic Technologies. The process replaces fossil-based raw materials with captured CO₂, resulting in a 20% to 30% reduction in the product's Global Warming Potential (GWP).

8. The CS laboratory has added dual instruments! Medical plastic additive testing aligns with the new USP 661.1 standard.

The CS Analysis Laboratory has recently added two new instruments to enhance its testing capabilities for plastic additives, fully complying with the revised USP 661.1 standard—this standard establishes the testing requirements for single plastic materials used in pharmaceutical and medical device packaging. The laboratory stated that the newly added high-performance liquid chromatography (HPLC) and gas chromatography (GC) instruments will play a key role in the detection of plastic additives as mandated by the USP.

The first China-New Zealand new energy vehicle dialogue was held in Wellington, New Zealand.

On December 3rd local time, Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, and Siobhan Routledge, Deputy Chief Executive of the New Zealand Ministry of Transport, jointly chaired the first China-New Zealand New Energy Vehicle Dialogue in Wellington. Xin Guobin stated that the Ministry of Industry and Information Technology is willing to work with the New Zealand Ministry of Transport to implement the important consensus reached by the leaders of the two countries, leverage complementary advantages, explore cooperation potential, and continuously strengthen pragmatic cooperation in the fields of new energy vehicles, charging infrastructure, and green low-carbon initiatives. As the China-New Zealand comprehensive strategic partnership enters its second decade, it will contribute to greater development in China-New Zealand relations in the new decade. Siobhan Routledge expressed that the New Zealand government is actively promoting the use of new energy vehicles, and the first China-New Zealand New Energy Vehicle Dialogue is of significant milestone importance, providing a platform for communication to deepen and expand the cooperation between the two countries in new energy vehicles. She welcomed excellent global new energy vehicle companies, including those from China, to enter the New Zealand market. During his visit to New Zealand, Xin Guobin also held talks with Diana Reiche, Assistant Deputy Minister of the New Zealand Ministry for Primary Industries, and Janine Cameron, Chief Transformation Officer, to engage in in-depth discussions on topics such as high-quality industrial development and energy conservation and carbon reduction. They agreed to promote pragmatic cooperation in the fields of consumer goods such as dairy products and wool textiles.

Overseas Macro Market:

[Head of the Department of Treaty and Law of the Ministry of Commerce Answers Questions from Reporters on the EU Terminating the WTO Dispute Case Against Us] A reporter asked: According to reports, the EU has announced the termination of the WTO case against China's trade restrictive measures (case number: DS610). What is your comment? Answer: I have noted the situation you mentioned. China has always believed that the EU's initiation of the case lacked basis. Therefore, the EU's decision to terminate the proceedings is the correct choice. I would like to emphasize once again that China consistently adheres to WTO rules and will continue to firmly uphold the rules-based multilateral trading system with concrete actions.

[Shipping Prices Surge 467% Due to Disruption of Commodity Supply Lines] Due to conflicts, sanctions, and surging production disrupting global supply lines, transocean freight rates for commodities ranging from energy to bulk ores have skyrocketed to a rare year-end surge. This year, the daily earnings for shipping crude oil along major routes saw the largest increase, rising by 467%, while freight rates for liquefied natural gas (LNG) and iron ore surged more than threefold and more than double, respectively. Traditionally, freight rates decline at year-end due to the off-peak demand season. The time ships spend transporting goods at sea has increased, leading to soaring prices, and some shipping executives predict that the overall market tightness will last at least until early next year.

[Ministry of Commerce: China and France will support and encourage mutual investment between enterprises of the two countries] On December 4th, the Ministry of Commerce held a regular press conference. Spokesperson He Yadong discussed the trends in Sino-French economic and trade cooperation. This morning, the Chinese Ministry of Commerce and the French Ministry of Economy, Finance and Industrial, Energy and Digital Sovereignty jointly hosted the seventh meeting of the Sino-French Entrepreneurs Committee in Beijing. More than 150 Chinese and French business representatives attended the meeting to discuss three themes: new paradigms for green and low-carbon cooperative development, new trends in industrial transformation and consumer change, and new opportunities for cross-border investment in innovation. They generally expressed strong confidence and a strong desire to deepen bilateral cooperation.

[Ministry of Commerce: The Chinese government conducts export control of rare earth-related items in accordance with laws and regulations] This afternoon, the Ministry of Commerce held a regular press conference, where the spokesperson responded to the export control of rare earth-related items. Spokesperson He Yadong of the Ministry of Commerce stated that the Chinese government conducts export control of rare earth-related items in accordance with laws and regulations. As long as the applications for export are for civilian use and compliant, the Chinese government has promptly approved them. At the same time, the Chinese government actively applies facilitation measures such as general licenses to promote compliant trade of dual-use items, effectively safeguarding the security and stability of the global production and supply chain.

"China, Russia, and Iran are frequently subjected to unilateral sanctions," Foreign Ministry responds. At the regular press briefing of the Ministry of Foreign Affairs on December 4, a media outlet asked that today is the International Day Against Unilateral Coercive Measures, and in recent years, we have seen many countries continuously and frequently adopt unilateral measures to impose economic sanctions on countries such as Russia, China, and Iran. What risks does the Chinese side believe these measures entail? In response, Chinese Foreign Ministry spokesperson Lin Jian stated that unilateral coercive measures violate the purposes and principles of the United Nations Charter, undermine multilateralism and the foundation of international rule of law, seriously violate basic human rights such as the right to life and the right to development, and hinder global development cooperation and the implementation of the United Nations 2030 Agenda for Sustainable Development.

[WTO Director-General: Trade in Services Will Be at the Core of Future Trade and Development] The "Trade in Services for Development" conference, jointly organized by the World Trade Organization and the World Bank, opened on the 3rd in Geneva, Switzerland. According to the latest WTO forecast, the global commercial services trade volume is expected to grow by 4.6% in 2025 and 4.4% in 2026, significantly higher than the growth rate of goods trade. The WTO predicts that goods trade will grow by 2.4% this year and only 0.5% next year. Among them, digital delivery services are the most dynamic sub-sector, expected to achieve growth of 6.1% and 5.6% in 2025 and 2026, respectively.

[The Bank of Japan is likely to raise interest rates in December, and the government may not intervene] Three government sources familiar with the discussions stated that the Bank of Japan is likely to raise interest rates in December, and the government is expected not to interfere with this decision. The Bank of Japan will raise the policy rate from 0.5% to 0.75%, a move that was hinted at in Governor Kazuo Ueda's speech on Monday. If it happens, this will be the first rate hike since January. One of the sources said, "If the Bank of Japan wants to raise interest rates this month, they can decide on their own. This is the government's stance." He added that it is almost certain that the central bank will proceed with the rate hike this month. Another source said that the government is prepared to tolerate the rate hike in December.

[U.S., Israel, and Lebanon Agree to Promote Israel-Lebanon Economic Cooperation] The Israeli Prime Minister's Office issued a statement on the 3rd, saying that under the direction of Prime Minister Netanyahu, as part of the ongoing security dialogue between Israel, the United States, and Lebanon, the Deputy Director of Diplomatic Affairs of Israel's National Security Council held talks in Lebanon with the U.S. President's advisor on Lebanese affairs and relevant Lebanese civil representatives. The statement said the talks were conducted in a "positive atmosphere," and all parties agreed to propose ideas for promoting potential economic cooperation between Israel and Lebanon. During the talks, the Israeli side made it clear that the disarmament of Hezbollah is a "mandatory obligation" and is unrelated to the progress of economic cooperation. The three parties agreed to continue maintaining dialogue.

Price Information:

The RMB exchange rate against the US dollar mid-point is reported at 7.0733, up 21 points; the previous trading day's mid-point was 7.0754, the previous trading day's official closing price was 7.0661, and the night trading session closed at 7.0640.

[Upstream Raw Material USD Market Prices]

CFR Northeast Asia 740 USD/ton, CFR Southeast Asia 720 USD/ton.

The Northeast Asia propylene FOB Korea average price is $695/ton, and the CFR China average price is $745/ton.

The CFR price in Northeast Asia for propane is 556-558 USD/ton; for butane, it is 601-603 USD/ton.

The CIF price for frozen goods in South China in December is as follows: Propane $574-584 per ton; Butane $554-564 per ton.

The CIF price of frozen goods in Taiwan is propane at $556-558/ton and butane at $601-603/ton.

[LLDPE USD Market Price]

Film: $840-850/ton (CFR Huangpu);

Injection molding: 880 USD/ton (CFR Huangpu);

[HDPE USD Market Price]

Film: $880-895/ton (CFR Huangpu)

Injection Molding: USD 815-820/ton (CFR Huangpu);

Hollow: $820-830/ton (CFR Huangpu);

Pipe material: $1000/ton (CFR Huangpu);

[LDPE USD Market Price]

Film: $990-1000/ton (CFR Huangpu);

Coating: 1190 USD/ton (CFR Huangpu).

[PP USD Market Price]

Injection Molding: 795 USD/ton (CFR Huangpu)

Copolymer: $830-855/ton (CFR Nansha);

Membrane Material: 965 USD/ton (CFR Huangpu);

Transparent: $1,065/ton (CFR Huangpu);

Pipes: $1100/ton (CFR Shanghai).