U.S. Department of Commerce Finds Continuation of Subsidies Likely on Chinese Corrosion Inhibitors
Estimated reading time: 4–6 minutes
Date: 2026-05-19
The U.S. Department of Commerce has released its final decision regarding certain corrosion inhibitors from China. The decision is the result of an expedited first sunset review of the countervailing duty order. This review is important in determining whether the removal of countervailing duties would result in continued subsidies.
Background Information
The Commerce Department had initially put an order on these inhibitors on March 19, 2021. This order came about to counter subsidies from China that affect U.S. businesses. On February 2, 2026, a review was started to reassess the situation.
Participants in the Review
The domestic company, Wincom Inc., expressed its interest in this review. This company is a manufacturer of similar products in the United States. They filed their notice of intent to participate on February 17, 2026. They have been recognized as an interested party because they manufacture the same type of products.
Results of the Review
The review found that taking away the duties would likely lead to more subsidies. These subsidies would continue to affect U.S. companies negatively. The Commerce Department used various legal frameworks, including sections of the Tariff Act of 1930, to reach this conclusion.
Subsidy Rates
The Commerce Department outlined specific subsidy rates for different Chinese companies. For example, Jiangyin Delian Chemical Co., Ltd. has a subsidy rate of 96.29%, while Nantong Botao Chemical Co., Ltd. has a rate of 64.18%. Some companies, like CAC Shanghai Chemical Co., Ltd., have higher rates at 239.21%. Specifically, all other companies covered by the order have a rate of 80.58%.
Conclusion
The U.S. Department of Commerce has made it clear that removing the duty order would lead to the continuation of subsidies. These subsidies are harmful to domestic producers like Wincom Inc. The countervailing duties will remain in place to support U.S. companies.
The decision follows strict procedures and guidelines to ensure fairness. The announcement also serves as a reminder for parties to handle confidential information with care.
The full details of this review are available electronically for those with access to the official systems. The Commerce Department stresses transparency in its decisions for public accountability.
Legal Disclaimer
This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
