European Union (EU) Launches Anti-Dumping Investigation into China’s PBAT! China’s One-Million-Ton Biodegradable Plastic Production Capacity Faces a Critical Test

According to Zhuanshu Vision, on June 4, 2026, the European Commission officially issued a notice of initiation, launching an anti-dumping investigation into polybutylene adipate terephthalate (PBAT) and poly(decamethylene adipate terephthalate) (PBSeT) originating in China. This is another major trade-restrictive measure taken by the EU against China’s biodegradable materials industry chain, following the final anti-dumping ruling on adipic acid and the provisional duties on BDO. The investigation is led by the European Commission’s Directorate-General for Trade and Economic Security, and was initiated at the request of German chemical giant BASF. The dumping investigation period covers the entire year of 2025, and the injury investigation period dates back to January 1, 2022.

The products concerned cover pure materials and mixtures in which PBAT/PBSeT accounts for no less than 50% by weight, corresponding to TARIC code 3907 99 80 50. The EU requires Chinese exporters to submit sampling questionnaires by June 11, and the European Commission will select representative companies with the largest export volumes to the EU as the sample. In principle, the investigation in this case will be completed within one year, and in any event no later than 14 months; within 7 to 8 months after initiation, the European Commission may decide whether to impose provisional anti-dumping measures.

1. Scale Paradox: 90% of global capacity with less than 20% utilization rate.

China has developed into the world’s largest producer and exporter of PBAT. According to Longzhong Information, by the end of 2025, China’s total PBAT capacity had exceeded 1.49 million tons, accounting for about 90% of the global total, with both capacity and output ranking first in the world. The period from 2021 to 2023 saw rapid capacity expansion, with a five-year compound annual growth rate of 42%. However, the imbalance between supply and demand is prominent—the industry’s overall capacity utilization rate in China was below 20% in 2025. Domestic demand growth for biodegradable film bags and agricultural mulch films has been weak, while applications such as straws and 3D printing have seen only modest growth. Exports have become the key support for absorbing excess capacity.

Statistics on China's PBAT main export trading partners, source: Longzhong Information.

In 2025, China's PBAT export volume exceeded 135,900 tons, making it the largest net exporter of PBAT in the world. The European Union market accounted for more than 50% of China's total PBAT exports, making it the most important overseas demand market. Specifically, in 2025, China's exports of PBAT to the EU reached 69,200 tons, accounting for 50.95%; this proportion further increased to 55.98% from January to April 2026. Italy is China's largest export destination in the EU, with an export volume of 28,500 tons, accounting for 41% of China's exports to the EU. Spain and the Netherlands followed closely with 16,800 tons and 13,200 tons, respectively, with the three countries combined accounting for 84%.

II. Escalation of Green Barriers: A Complete Blockade from Upstream Raw Materials to Finished Products

This anti-dumping investigation is not an isolated incident. Prior to this, the EU had already built a complete chain of trade restrictions along the industrial chain, extending from upstream to downstream:

Adipic acidIn May 2026, the European Union made a final anti-dumping ruling on exports of adipic acid from China, imposing anti-dumping duties ranging from 29.1% to 42.3% on major exporting companies in China.

BDOThe EU’s anti-dumping investigation into Chinese BDO is still ongoing, and provisional anti-dumping duties have already been imposed. Starting from February 6, 2026, the EU will levy provisional anti-dumping duties of 105.6% to 113.7% on BDO imported from China. Combined with China’s cancellation of the BDO export tax rebate (previously 13%) effective April 1, 2026, this creates a “double squeeze” of external tariffs and internal tax relief withdrawal.

PBAT/PBSeTA formal investigation was initiated on June 4, 2026.

Notably, BASF has played multiple roles in this trade action. According to Sina Finance and China Chemical Industry News, BASF filed an anti-dumping complaint with the European Commission against Chinese PBAT on April 20, 2026. At the same time, BASF has decided to withdraw from its joint venture in Xinjiang and exit its battery materials partnership in China, while its PBAT production site in Ludwigshafen, Germany, operating under the ecoflex® brand, has an annual capacity of 74,000 tons. As Chinese competitors face potentially high tariffs, this capacity is likely to gain a larger share of the EU domestic market. In addition, BASF’s U.S. subsidiary filed an anti-dumping petition against Chinese PTMEG products on April 8, 2026, and the U.S. Department of Commerce promptly initiated an investigation on April 30, signaling a broader global containment trend.

"Export 'The Last Carnival': March Hits a Nearly Five-Year High"

What is interesting is that on the eve of the anti-dumping case filing, China’s PBAT exports experienced rapid growth. According to data from Longzhong Information and ChemNet, China’s PBAT exports reached 18,282 tons in March 2026, up 61.28% month on month and 70.19% year on year, hitting a five-year high. From January to March 2026, cumulative exports totaled 44,992 tons, up 39.97% year on year; export volume in April remained at 16,993 tons, a 49.45% increase year on year.

Export patterns are highly concentrated: Guangdong Province ranks first with 9,529.78 tons (accounting for over 52%), mainly driven by orders from Zhuhai Jinfa; Xinjiang ranks second with 3,241 tons, relying on the advantages of the China-Europe Railway Express route; Liaoning saw a month-on-month surge of 361.4%. In March, Italy and India reached export volumes of 5,260.8 tons and 4,655 tons, respectively, together accounting for over 54%. This wave of "export rush" is viewed by the industry as overseas buyers stocking up before the tariff increases.

IV. Breakthrough Strategies of Leading Enterprises: Price Increases and Legal Responses Proceed in Parallel

Facing the dual pressure of anti-dumping measures on both raw materials and finished products, leading companies have already taken action. According to a March 6, 2026 report by Chem Manufacturing Network, Kingfa Sci. & Tech. announced a price increase of RMB 700 per tonne for its PBAT resin products, while Blue Ridge Tunhe raised PBAT product prices by the equivalent of approximately RMB 759 per tonne. The price adjustments came against the backdrop of the EU’s final anti-dumping ruling on adipic acid and the implementation of provisional duties on BDO, with the aim of stabilizing the domestic market and securing leverage for defenses in international trade negotiations.

In terms of responding to the case, the EU requires exporting companies to submit sampling questionnaires by June 11, and the relevant enterprises have already begun preparing their responses. According to the China Trade Remedy Information website and notifications from the Ministry of Commerce, sampled companies must submit formal questionnaires within 30 days after the sampling results are announced, and on-site verifications will be conducted subsequently. Industry insiders said that companies will actively provide evidence to demonstrate the absence of dumping behavior in an effort to secure lower final duty rates. However, due to limited resources for responding to the investigation, small and medium-sized enterprises may face the risk of being forced out of the EU market.

5. Rising Costs of the Green Transition: Who Pays for Protectionism?

The EU has justified this investigation on the grounds of “protecting domestic industries from unfair competition.” However, Europe’s local PBAT production capacity—74,000 tonnes per year at BASF’s German site and over 100,000 tonnes per year for Italy-based Novamont’s Origo-Bi® series—amounts to less than 200,000 tonnes in total, while China’s PBAT exports to the EU reached 69,200 tonnes in 2025, and Chinese PBAT accounts for more than 70% of total overseas demand (data source: Longzhong Information). Once high anti-dumping duties are imposed, it will be difficult to quickly fill the supply gap in the EU market, and the resulting costs may ultimately be passed on to downstream companies and end consumers.

In addition, anti-dumping duties on BDO and adipic acid are indirectly impacting PBAT through cost pass-through. BDO accounts for more than 40% of PBAT’s raw material costs; as its exports face disruptions and large volumes are redirected to the domestic market, downward pressure is being exerted on domestic BDO prices, thereby affecting PBAT’s cost structure.

Sixth, where is the way out: diversification, upgrading, and the release of domestic demand.

Industry analysis suggests that the Chinese PBAT industry needs to break through in the following directions:

Market diversificationBy March 2026, India had become the second-largest export destination (4,655 tons), while the Southeast Asian market in Vietnam also saw significant growth. Companies can further expand into the Middle East, Latin America, and Africa, make use of compliant third-country re-exports, and improve green and low-carbon certifications.

Integrated Industrial Chain and Product UpgradingBuild or secure upstream BDO and adipic acid capacity to reduce earnings volatility; accelerate R&D on bio-based PBAT routes, complete carbon footprint certification, and enhance differentiation advantages.

Release domestic demandAs policies restricting and banning plastics continue to advance in areas such as express delivery packaging, agricultural mulch film, and food service containers, the domestic market still holds enormous potential. If domestic demand can be expanded, reliance on external markets can be fundamentally reduced.

Defend and Dialogue on RulesEnterprises should form professional teams to actively respond to the lawsuit, and the Ministry of Commerce and industry associations are also promoting upstream-downstream coordination to guide the orderly development of the industry.

VII. Conclusion

The EU's anti-dumping investigation into Chinese PBAT is not only a severe trade test but also a forced transformation for the industry. Overcapacity, insufficient domestic demand, reliance on exports, and product homogeneity are the core bottlenecks restricting high-quality development in the industry. In the context of the global trend toward green transformation, China's PBAT industry can only truly break through trade barriers and achieve sustainable development by shifting from "scale-first" to "high-quality survival."