U.S. Department of Commerce Confirms Continuation of Subsidies on Oil Country Tubular Goods from China
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Date: 2026-04-15
The U.S. Department of Commerce has announced the final results of its expedited third sunset review of the countervailing duty order on oil country tubular goods (OCTG) from the People’s Republic of China. This review, which is part of a regular five-year cycle, evaluates whether removing the duty order would likely lead to the continuation or recurrence of subsidies.
According to the Department of Commerce, if the countervailing duty order were revoked, it is likely that countervailable subsidies would continue or reoccur. This means that Chinese companies might still be receiving unfair financial support from their government, which could harm U.S. businesses.
The product in question, OCTG, is essential for the oil and gas industry. It includes pipes used to drill and transport oil and gas from wells.
The sunset review began on December 1, 2025. United States Steel Tubular Products and the U.S. OCTG Manufacturers Association, representing domestic interests, showed intent to participate in the review. They provided responses supporting the continuation of the duty order.
During the review, the Department of Commerce received no adequate responses from China or any Chinese companies. As a result, they decided to conduct an expedited 120-day review.
The Department of Commerce’s findings specify net countervailable subsidy rates that range from 20.90% to 26.19% for various Chinese producers and exporters. These include companies like Jiangsu Changbao Steel Tube Co., Tianjin Pipe (Group) Co., and Zhejiang Jianli Enterprise Co. Ltd.
Finally, the Department of Commerce will continue to enforce the countervailing duty order to help maintain fair competition within the U.S. market. They stress the importance of companies understanding their responsibilities concerning any shared private information during this process.
This decision aims to protect American jobs and ensure that U.S. companies can compete fairly with international businesses.
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