As the import volume of post-consumer recycled plastic (PCR) surges, recyclers claim that this move is harming the American plastic recycling system, and there are allegations that some imported resins may not be genuine recycled materials. A bill currently being advanced in California requires beverage container manufacturers to report the origin of all PCR in their products. Senate Bill 633 (SB 633) will add third-party PCR verification and origin requirements to the regular reporting that producers are required to submit under the state's container deposit system. These reports must be submitted to the California Department of Resources Recycling and Recovery (CalRecycle). The bill was introduced in February by Democratic Senator Catherine Blakespear, who represents parts of San Diego and Orange County. After passing the state Senate in early June, it is now entering the review stage in the state Assembly. At the hearing of the House Natural Resources Committee on July 14, Blakespear elaborated on California's beverage container recycling content regulations, which require that by 2025, PCR accounts for 25% of containers, and by 2030, it reaches 50%. "These goals have driven up the demand for recycled plastics, and currently, most recycled plastics come from out-of-state and international recyclers," Blakespear said. "According to reports, last year saw a record high in imports. However, there is currently no system in place to verify the authenticity of the recycled content claimed by beverage manufacturers." "In fact, recycled plastic, after being processed into pellets or sheets by recyclers, is indistinguishable from new plastic," Blakespear continued, "Recent reports have found that at least some of the plastic imported into the state has new plastic masquerading as recycled plastic." Blakespear pointed out that California already has similar third-party verification requirements for manufacturers using recycled plastic in reusable shopping bags, and at the time this requirement came into effect, most bag manufacturers were unable to prove that their bags were made from recycled materials. "This indicates that we also need a 'trust but verify' model for the recycled plastic in the bottles," she said. The Association of Plastic Recyclers (APR) is the main supporter of the legislation. APR has under its umbrella Resource Recycling, Inc., which is the publisher of Plastics Recycling Update. APR state government relations manager Allison Kustic testified that manufacturers sourcing PCR from overseas is harming recyclers within the state. "California recyclers are indeed struggling to maintain operations because they cannot sell their recycled plastic," she said. Kustic is discussing the necessity of the packaging producer responsibility extension system established by Bill 54 (SB 54). "These policies will collect thousands of pounds of recyclable materials, but if California recyclers cannot sell their products, there will be no businesses left to recycle the materials collected in California, which is a big problem," Kustic added. The American Beverage Association testified against the measure, stating that while the organization supports a recycling component verification system, the origin requirements are concerning. "As long as the resin is certified, its origin is essentially irrelevant to the discussion," said Dennis Albiani, representing the American Beverage Association. He added that the bill places the responsibility for origin information on manufacturers, who "may not have direct knowledge of the source of the materials—we are not bottle manufacturers, we are just companies that fill beverages into bottles." The committee passed the bill with 9 votes in favor and 4 votes against, and the bill has been submitted to the appropriations committee for further review.

According to the China Trade Relief Information Network, on July 16, 2025, the Turkish Ministry of Trade issued announcement No. 2025/15, stating that the anti-dumping measures on waterproof tarpaulins made of polyethylene and polypropylene originating from China and Vietnam, as well as similar polymer plastic products [in Turkish: Polietilen ve polipropilenden mamul şerit veya benzerlerinden dokunmuş mensucat (yalnız dokuma brandalar)], will expire on May 6, 2026. Interested parties should submit applications and evidence materials for the sunset review investigation no later than three months before the expiration date. The Turkish tax numbers for the products involved are 3921.90.60.00.11, 3921.90.60.00.13, and 3926.90.97.90.18. The announcement takes effect from the date of publication. On January 11, 2008, Turkey initiated an anti-dumping investigation against waterproof tarpaulin made from polyethylene and polypropylene originating from China and Vietnam, as well as products made from polymer plastics. On November 15, 2008, Turkey made a positive final ruling in the case and began to impose anti-dumping duties on the involved products from China and Vietnam. Subsequently, Turkey conducted two sunset reviews, making positive rulings on November 11, 2014, and May 6, 2021, extending the duration of the duties.

The Critical Chemicals Alliance aims to address supply chain dependencies and market distortions. The EU chemical production faces challenges from cheaper competitors in the United States and China. The European Commission will expand national subsidies and simplify regulations for the chemical industry. Image source: Internet The EU's executive body stated that the European Commission will collaborate with member states and the chemical industry to support the production of chemicals deemed essential for the European industrial supply chain. The European Commission has announced that it will establish a Critical Chemical Alliance later this year, which will bring together the Commission, member states, and various stakeholders as part of a broader plan to revive the European chemical industry. The committee stated in a statement that the chemical alliance will "identify key production bases that require policy support and address trade issues such as supply chain dependencies and market distortions." This initiative draws on a previously established alliance that is responsible for identifying metals and minerals crucial to the energy transition. Subsequently, the EU set mining, processing, and recycling targets for 17 strategic materials. Chemicals are fundamental input materials for almost all industries (from textiles and defense to technology) and directly create 1.2 million jobs within the EU. However, during the COVID-19 pandemic, chemical production significantly declined, and it has still not fully recovered in the face of competitors from the US and China that have significantly lower energy and production costs. Committee officials stated that over the past two years, more than 20 chemical production bases have closed, and petrochemical and ammonia products are "under tremendous pressure." "First, there is the issue of sovereignty: we must protect the steam cracking units," said European Commission Executive Vice President and Industry Commissioner Stephane Sejourne to reporters. The steam cracking unit is a unit in petrochemical plants used to produce basic chemicals such as ethylene and propylene, which are widely used in products like food plastic packaging, rubber, automotive headlights, and fleece hoodies. The European Union currently has about 40 steam cracking units. Chemical giant Dow (DOW.N) announced plans to close two factories in Germany and one in the UK over the next two years. Sai Ruone told reporters that the alliance will assess the EU's dependence on imports in key molecules. "For example, in the case of methanol, we rely 80% on foreign imports. If we look back at the key production bases, we must protect and maintain Europe's sovereignty... Relevant work will identify these critical molecules, and the plan also suggests promoting a mechanism similar to the 'Critical Molecules Act'." In addition, the committee will include chemicals in future trade agreements and strengthen monitoring of chemical imports. Since 2024, the committee has launched 18 trade remedy investigations targeting different molecules. To alleviate the impact of high energy prices, the committee will expand national subsidies, accelerate approval processes, and provide energy security through EU funds. Serone stated that the committee will also establish "EU content" standards for chemicals to be included in public procurement requirements, a measure that is being promoted across the entire EU industry. Finally, the committee will propose the sixth simplification plan for the chemical industry, known as the "omnibus amendment." This amendment is expected to be presented within the year and will simplify the labeling rules for hazardous chemicals and revise regulations related to cosmetics and fertilizers, anticipated to save the industry €363 million (approximately $425.47 million) annually.

International News Digest: Raw Material News: Europe’s Chemicals Sector Suffers Another SetbackAutomotive News: BYD's "Shenzhen" Departs for Europe, Carrying Over 6,800 New Energy VehiclesAdditives News: Clariant ShiftMax™ 100 RE Reverse Water-Gas Shift Catalyst Empowers INERATEC's Pioneering E-Fuel PlantAerospace News: Arkema and Hexcel Achieve Breakthrough in Aerospace Thermoplastic Composite TechnologyMacro News: ING: India Could Be the Next Country to Reach a Trade Deal With the USPrice Information: Central Parity Rate of RMB Against USD Reported at 7.1541, Down 7 Pips   The following are details of international news: 1.Europe’s Chemicals Sector Suffers Another SetbackVynova Announced Today That It Will Cease PVC Production at Its Site in Beek, Netherlands, by November 2025. It’s the Second Shutdown of Europe-Based Chemicals Production Plants Announced in as Many Days: Dow Said Yesterday It Will Close Two Plants in Germany and One in the UK. Challenging Market Dynamics Are Cited as the Reason for These Closures. 2. US EVA Exports Plummeted by 14%! According to the Data of the United States International Trade Commission, the Export Volume of EVA in the US Fell by 14% to 46,000 Tons in the First Quarter of 2025, the Import Volume Fell by 17%, and the Price Fell by 5.6% (the Spot Price of Medium-Grade EVA in Houston Port Fell to USD 1175/ton). Traders Bluntly Said, 'No Goods to Asia', the Focus of Exports Was Forced to Turn to Latin America, Africa and Europe-Middle East-Africa (EMEA) Markets. 3. Clariant ShiftMax™ 100 RE Reverse Water-Gas Shift Catalyst Empowers INERATEC's Pioneering E-Fuel PlantClariant Announced Today That Its ShiftMax 100 RE Catalyst Powers INERATEC's Advanced Power-to-Liquids Fuel Plant "ERA ONE" Located in the Frankfurt-Höchst Industrial Park in Germany. The Facility Was Officially Put Into Operation on June 3, With an Annual Carbon Dioxide Processing Capacity of Approximately 8,000 Tons, Which Can Be Converted to Produce Up to 2,500 Tons of Synthetic Fuels and Wax Products. This Production Scale Makes It One of the World's Largest Operating "Power-to-Liquids" Projects and Establishes the Key Position of the Two Companies in the Field of Sustainable Fuel Technology Innovation. 4.Avantium Signs Bio-Based FDCA Offtake Agreement With PLIXXENT for Use in Insulating Polyurethane Foam Production Avantium, a Leading Renewable and Circular Polymer Materials Company, and PLIXXENT, a Leading Polyurethane Systems Company, Have Signed a Conditional Five-Year Offtake Agreement. Under the Agreement, PLIXXENT Will Purchase FDCA (2,5-Furandicarboxylic Acid) Produced by Avantium's Flagship Plant for the Production of Insulating Polyurethane Foam. PLIXXENT's Evaluation Confirmed That FDCA Performs Excellently in Polyester Polyols and Their Derived Insulating Polyurethane Foams. Compared With Traditional Petrochemical-Based Polyurethane Foams, FDCA-Based Polyurethane Foams Have Significant Environmental Advantages, Meeting the Growing Market Demand for Environmentally Friendly Building Materials. In Addition, They Exhibit Excellent Performance in Key Thermal Insulation Indicators Such as Thermal Conductivity and Flame Retardancy, While Also Providing Excellent Mechanical Strength and Dimensional Stability to Ensure the Long-Term Integrity and Effectiveness of the Foam Structure. 5. Joint Technical Paper to Help Companies With New REACH Labelling Requirement A Group of European Plastics Trade Bodies Have Published Guidance for Businesses in the Run-Up to a New Labelling Regime, Due to Come Into Effect in October This Year, Spelling Out How to Reveal the Level of Microplastics in Certain Products. The Organisations Said the Document Is Designed to Support Polymer Producers, Compounders, Masterbatchers, and Converters as They Prepare for New Labelling Obligations, Which Are to Come Into Effect on 17 October 2025. 6. Arkema and Hexcel Achieve Breakthrough in Aerospace Thermoplastic Composite Technology Recently, Hexcel Showcased New Carbon Fiber-Reinforced PEKK Composite Components Developed in Collaboration With Arkema, Revealing the Breakthrough Progress of Both Parties in the Field of Thermoplastic Composites. The Helues Project, Funded by the German Aerospace Center and Supported by the Bavarian State Ministry of Economic Affairs, Brings Together Partners Such as Airbus Helicopters Germany GmbH, Neue Materialien Bayreuth GmbH, Christian Karl Siebenwurst GmbH & Co. KG, and Incoe Corporation. It Has Pioneered a New Manufacturing Process for High-Temperature Thermoplastic Composites Worldwide, With the Core Technology Being One-Step Molding and Injection Overmolding. The Technology Uses HexPly® Carbon Fiber-Reinforced Kepstan® PEKK Unidirectional Tapes and Kepstan™ PEKK Injection Compounds as Raw Materials, Enabling the Production of a Complex Structural Part With Reinforcing Ribs and Functional Components in as Little as 2 Minutes. 7. BYD's "Shenzhen" Departs for Europe, Carrying Over 6,800 New Energy Vehicles Caixin News Agency Reported on July 9 That the World's Second-Largest Car Carrier — BYD's "Shenzhen" Ro-Ro Ship, Loaded With Over 6,800 BYD New Energy Vehicles, Departed From Shenzhen Xiaomo International Logistics Port for Europe, Scheduled to Call at the Port of Zeebrugge in Belgium. Overseas macro market information: ING: India Could Be the Next Country to Reach a Trade Deal With the US Deepali Bhargava, Head of Asia-Pacific Research at ING, Said That India Will Be the Next Country to Reach a Trade Deal With the US. Trump Recently Stated That the US Is Almost Reaching a Deal With India. Bhargava Said That India Is One of the First Countries to Start Trade Negotiations With the US. India Has Recently Offered Tariff Concessions in Politically and Economically Sensitive Industries Including Agriculture and Dairy Products. If India Makes Some Concessions on Agricultural Product Imports, the Two Countries May Reach an Agreement Soon. IDC: Global PC Shipments Grew 6.5% Year-on-Year in Q2 According to the Latest Preliminary Results of the Global Personal Computing Device Quarterly Tracking Data From the International Data Corporation (IDC), Global PC Shipments Grew 6.5% Year-on-Year in the Second Quarter of 2025, Reaching 68.4 Million Units. Import Tariff Policies Have Begun to Show Effects, and While Demand Remains Strong in Other Regions, Growth in the US PC Market Has Slowed. EU Negotiators Are Close to Reaching a Trade Deal With Trump According to the Financial Times, EU Negotiators Are Close to Reaching a Trade Deal With Trump, Which Will Confirm That the EU Faces Higher Tariffs Than the UK. US to Impose 25% Tariffs on Japan, Ishiba Shigeru Makes Tough Statement: Never Compromise Regarding the US Plan to Impose 25% Tariffs on Japan, Japanese Prime Minister Ishiba Shigeru Said That Japan Will Unite Domestically to Safeguard National Interests and Will Not Compromise on Issues That Cannot Be Compromised, and Will Never Sacrifice Japan's Agriculture. Price information: Central Parity Rate of RMB Against USD: The Central Parity Rate of RMB Against USD Was Reported at 7.1541, Down 7 Pips; the Central Parity Rate of the Previous Trading Day Was 7.1534, the Official Closing Price of the Previous Trading Day Was 7.1732, and the Night Session Closing Price Was 7.1780. Raw Material USD Market Prices: Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton.Propylene Northeast Asia: FOB Korea Average $740/ton; CFR China Average $785/ton.North Asia Frozen Cargo CIF, Propane $534-536/ton; Butane $504-506/ton.South China Frozen Cargo CIF for Early August, Propane $563-570/ton; Butane $533-540/ton.Taiwan Region Frozen Cargo CIF, Propane $534-536/ton; Butane $504-506/ton. LLDPE USD Market Prices: Film: $875-910/ton (CFR Huangpu), Down $20/ton;Injection Molding: $950/ton (CFR Dongguan). HDPE USD Market Prices: Film: $920/ton (CFR Huangpu);Blow Molding: $855-860/ton (CFR Huangpu).LDPE USD Market Prices:Film: $1,080-1,110/ton (CFR Huangpu);Coating: $1,350/ton (CFR Huangpu). PP USD Market Prices: Homopolymer: $935-980/ton (CFR Huangpu);Copolymer: $965-995/ton (CFR Huangpu);Film Grade: $1,000/ton (CFR Huangpu);Transparent Grade: $1,085/ton (CFR Huangpu);Pipe Grade: $1,160/ton (CFR Shanghai).  

International News Digest:   Raw Materials - Acquisition Completed! BASF Fully Owns Nylon Intermediate JV Alsachimie Automotive - SK chemicals Signs Exclusive Deal with Durmont to Supply Recycled PET for Car Carpets Medical -Swiss medtech manufacturer opens first production facility in China / Expansion also planned for USA Macro - Goldman Sachs: OPEC+ Output Hike Unlikely to Jolt Market if Decided Sunday Price - USD/CNY Central Parity at 7.1546, Down 12 Pips   International News Details   1. Trump's "One Big Beautiful Bill Act" Passed The Trump administration's "One Big Beautiful Bill Act" was passed by the U.S. Senate. Dubbed a 2.0 version of the "America First" policy, this massive tax and spending bill cleared a procedural vote in the Senate on June 28, 2025, by a 51-49 margin, and was finalized on July 1 with a 51-50 vote (with Republican Vice President Vance casting the tiebreaker). The House passed an earlier version in May by 215-214 and is expected to vote on the Senate-amended bill on July 3, aiming for Trump's signature by July 4.   2. Deadline Looms for Talks; Trump Rules Out Extending Tariff Grace Period U.S. President Trump said on Tuesday (July 1) he has no plans to extend the tariff grace period ending July 9. In April, Trump imposed "reciprocal tariffs" on nearly all trading partners (rates tied to their U.S. trade deficits), later temporarily cutting them to 10% during negotiations. "No, I'm not considering a pause. I'll be sending letters to many countries," Trump said, referring to notices on July 9 informing nations of their applicable tariff rates.   3. Acquisition Completed! BASF Fully Owns Nylon Intermediate JV Alsachimie BASF announced on July 1 it has acquired DOMO Chemicals' 49% stake in Alsachimie, making it the sole owner (up from 51% previously). The deal complements BASF's recent moves to strengthen PA66 production at its Chalampé site, following the June 12 launch of a world-class hexamethylenediamine (HMD) plant in France (boosting annual HMD capacity to 260,000 tons). Expansion of PA66 capacity at Freiburg, Germany, is also in final stages.   4. States Crack Down on Single-use Plastics Starting July 1 Several states are implementing new packaging-related laws effective today, July 1, including extended producer responsibility requirements and bans on specific single-use items. These laws potentially could have a ripple effect on plastics processors.   5. SK chemicals Signs Exclusive Deal with Durmont to Supply Recycled PET for Car Carpets SK chemicals signed an exclusive agreement with Austrian automotive carpet maker Durmont and South Korean logistics firm Paarang at its Seoul ECOLAB headquarters. The trio has developed yarns, carpets, and floor mats using SK chemicals' CR (chemical recycling) PET solution, meeting automotive testing and quality standards. Under the deal, SK chemicals will supply Durmont with SKYPET® CR – a 100% recycled, ISCC PLUS-certified, fully recyclable material – to accelerate supply chain development and market promotion.   6. IMCD Acquires Apus Química, a Plastics and Rubber Developer IMCD N.V. has announced the acquisition of 100% of the shares in Apus Química SpA.Founded in 2016 and headquartered in Santiago, Chile, Apus Quimica specializes in the distribution and development of performance chemicals for the rubber, plastics and chemical sectors. With two warehouses, Apus Quimica serves the Chilean markets with a strong portfolio.   7.Toy Giant Posts 7th Consecutive Profit Growth, Staff Reaches 1,689 The Lego Group reported its 7th straight UK sales record, with plans to move to a new London headquarters by 2027. Lego UK's 2024 pre-tax profit rose to £42.9 million (from £24.2 million in 2023), with revenue exceeding £501.7 million (up from £449.2 million) – marking seven years of consecutive sales and profit growth.   8. Nike Struggles with $1B Tariff Losses; China Supply Chain Share Slashed Nike expects up to $1 billion in losses for fiscal 2026 due to tariffs (equivalent to three months of China profits). Its China supply chain share, currently 16%, is set to halve as production shifts to Vietnam, Indonesia, etc., targeting below 10%.   9. Swiss medtech manufacturer opens first production facility in China / Expansion also planned for USA On 26 June, Ypsomed officially opened its first production facility in China. As announced by the company, the new plant is located in the industrial park in Changzhou, Jiangsu, and comprises around 15,000 m² of production, storage, and office space. In future, up to 100 mn injection systems are to be manufactured there annually for the Chinese market.   Overseas macro market information:   Goldman Sachs: OPEC+ Output Hike Unlikely to Jolt Market if Decided Sunday Goldman Sachs said a potential OPEC+ decision to boost production on Sunday would likely have a muted market impact. India Launches Domestic Rare Earth Production Boost Plan India, the world's third-largest rare earth reserve holder, plans to invest ₹35-50 billion to reduce reliance on China, aiming to become a key alternative supplier. Analysts note this requires more investment and breakthroughs in mining/processing technologies. Intel Reportedly Considering Adjusting Wafer Foundry Strategy Intel's CEO is weighing changes to its foundry strategy, potentially skipping the 18A process for new clients and moving directly to 14A. The board may discuss 18A's future this month, with asset impairments potentially costing hundreds of millions.   Price information:   【USD/CNY Central Parity Rate】The central parity rate of RMB against USD is quoted at 7.1546, down 12 pips; the central parity rate of the previous trading day was 7.1534, the official closing price of the previous trading day was 7.1618, and the overnight closing price was 7.1650.   【Raw Materials USD Market Prices】 Ethylene Asia: CFR Northeast Asia 850 USD/ton; CFR Southeast Asia 860 USD/ton. Propylene Northeast Asia: FOB Korea average price 745 USD/ton; CFR China average price 795 USD/ton. North Asia frozen cargo CIF price, propane 533-535 USD/ton; butane 506-508 USD/ton. South China frozen cargo for first half of August CIF price, propane 562-572 USD/ton; butane 527-537 USD/ton. Taiwan region frozen cargo CIF price, propane 533-535 USD/ton; butane 506-508 USD/ton.   【LLDPE USD Market Prices】 Film: 875-930 USD/ton (CFR Huangpu), down 5 USD/ton; Injection molding: 940 USD/ton (CFR Dongguan);   【HDPE USD Market Prices】 Film: 910-930 USD/ton (CFR Huangpu); Hollow: 860-870 USD/ton (CFR Huangpu);   【LDPE USD Market Prices】 Film: 1080-1090 USD/ton (CFR Huangpu), down 10 USD/ton; Coating: 1350 USD/ton (CFR Huangpu)   【PP USD Market Prices】 Homopolymer: 935-980 USD/ton (CFR Huangpu); Copolymer: 965-995 USD/ton (CFR Huangpu); Film material: 1000 USD/ton (CFR Huangpu); Transparent: 1085 USD/ton (CFR Huangpu); Pipe material: 1160 USD/ton (CFR Shanghai).

International News Guide  - Raw Materials - Awaiting Rare Earth "Arrival"? US Approves Ethane Ships but Bans Unloading!  - Policy - Bombshell! Trump Says US Has Signed Agreement with China, Provides No Details  - Medical - 3D Systems Advances Bioprinting for "First-of-its-Kind" Nerve Repair  - Macro - To Push Iran Back to Nuclear Talks, US Considers Easing Sanctions and Facilitating $30B Investment  - Price - USD/CNY Central Parity at 7.1627, Down 7 Pips    International News Details    1. Bombshell! Trump Says US Has Signed Agreement with China, Provides No Details  US President Trump said Thursday the US had signed an agreement with China a day earlier but gave no specifics.  "Everyone wants a deal, wants to be part of it, right? I know (US Trade Representative) Jamieson Greer, (Commerce Secretary) Howard Lettnick, and (Treasury Secretary) Scott Bessent are working overtime to reach agreements with other countries," Trump said. "Remember months ago the media asked if we'd really found interested parties? Now we signed with China yesterday, didn't we?"  He added: "We're starting to open the Chinese market—things that were impossible before are happening now."  Trump made the remarks at a White House event to push lawmakers to pass a government spending bill by July 4.    2. Dr. Coffee enhanced food safety in commercial coffee machines with INEOS Styrolution's Zylar® MBS Dr. Coffee, a leading manufacturer of commercial coffee machines in China, has collaborated with INEOS Styrolution to utilize Zylar® MBS for key food contact components in its new line of premium coffee machines, launched worldwide. This partnership highlights the value of Zylar® MBS, which provides brand owners with a commitment to food safety and superior performance.   3. Awaiting Rare Earth "Arrival"? US Approves Ethane Ships but Bans Unloading!  Reuters reported the US Department of Commerce Wednesday issued permits to Enterprise Products (EPD.N) and Energy Transfer (ET.N) allowing ethane loading onto ships bound for China, but banning unloading at Chinese ports without extra authorization. Notably, on June 19, China's Ministry of Commerce said it was accelerating reviews of rare earth export license applications, having approved a certain number of compliant applications and continuing to strengthen approvals.  On the 26th, domestic firm Satellite Chemical reposted *Ethane Embargo Tensions Ease* via its official WeChat, stating the only restriction was the final "step" of unloading— a vague state typical of policy relaxation signals.    4. UBE Launches Bio-Circular Caprolactam and Recycled PA Composites  UBE Corporation announced that its bio-circular caprolactam produced by UBE Corporation Europe S.A.U. and recycled polyamide composites DINALON® A2X25-MI H-4109 (PA66) and B2E25 G20DI-4115 (PA6) by UBE Composites Europe S.L.U. have obtained U-BE-INFINITY® eco-product brand certification.  UBE grants this brand to R&D achievements and products with outstanding environmental contributions to enhance their value, committing to solving global environmental issues through U-BE-INFINITY® branded products.    5. Malaysia will stop accepting U.S. plastic waste, creating a dilemma for California    Malaysia will ban plastic waste imports from the U.S. starting Tuesday because of America’s failure to abide by the Basel Convention treaty on international waste transfers, in a move that could have significant consequences for California.   6. Sabic to permanently close steam cracker at Wilton, UK Sabic will permanently close its 865,000 metric tons per year Olefins 6 steam cracker at Wilton, UK, the company said in a statement June 25. The unit has an annual nameplate production capacity of 865,000 metric tons of ethylene, 415,000 metric tons of propylene and 100,000 metric tons of butadiene, according to data from Platts, part of S&P Global Commodity Insights.     7. 3D Systems advances bioprinting tech for ‘first-of-its-kind’ nerve repair 3D Systems announced that its 3D bioprinting technologies have enabled FDA approval for the regenerative repair of peripheral nerve damage. For the last several years, 3D Systems has partnered with TISSIUM, a French MedTech company that is a pioneer in the development of biomorphic programmable polymers for tissue reconstruction, to develop a bespoke 3D printing solution for the repair of damaged peripheral nerves. 8. Circ Partners with Selenis to Scale Recycled PET from Cotton-Polyester Blends  Under a new strategic agreement, Portuguese firm Selenis will toll process and polymerize thousands of tons of Circ polyester annually at industrial scale. The news follows French President Macron's May announcement of a €450 million investment in a new French plant using US-based Circ's cotton-polyester blend recycling technology.  The new cross-industry collaboration enables Circ to leverage Selenis' mature polymerization infrastructure and expertise to convert recycled monomers from used textiles into high-quality Circ recycled PET for sportswear, basics, and fashion. The final result integrates scalable circular solutions into current supply chains.         Overseas Macro Updates    Japanese Finance Minister: Government Cannot Implement Bond Repurchases Currently  Finance Minister Katsunobu Kato: The government cannot implement bond repurchases now; will continue considering the possibility. Will monitor developments on the US "retaliatory tax" proposal.    Tokyo Inflation Slows for First Time in Four Months as Energy Costs Ease Before Elections  Tokyo inflation slowed for the first time in four months due to moderating energy price gains and the Tokyo municipal government's partial water fee waiver for households ahead of national elections.    Thai Finance Minister Announces Trade Talks in US Next Week  Thai Finance Minister Pichai Chunhavajira told reporters Friday he will depart for trade talks in the US next week, confirming the dates but not details.  Thailand faces a critical window—if it fails to reach a tariff reduction agreement before the July suspension period ends, its exports will be hit with 36% US tariffs, severely impacting the export-reliant economy. During the current suspension, most countries enjoy a 10% baseline rate.  Goldman Sachs: Options Market Shows Low Likelihood of Hormuz Oil Disruption  Goldman Sachs reported the options market gives a 60% probability Brent crude will stay at $60-70/barrel in three months, with 28% chance of exceeding $70.    Report: US Considers Easing Sanctions on Iran to Push Nuclear Talks, Facilitate $30B Investment  CNN cited four sources Thursday that the Trump administration is considering measures to bring Iran back to the negotiating table, including easing sanctions, helping Iran secure up to $30 billion in "civil nuclear program" investment, and unfreezing billions in restricted funds. A Trump administration official said proposals have been put forward but are in the preliminary stage and evolving, with the US demand for "zero uranium enrichment" remaining unchanged.    Trump Says "Very Big" Trade Deal with India Possible Soon  US President Trump said a "very big" trade deal with India could be signed soon, opening the Indian market to US businesses. Negotiators are meeting in Washington to break recent deadlocks on key issues. "We're reaching some great agreements. One more is coming, maybe with India—very big—to open India," Trump said at a White House event Thursday.      Price Information    [USD/CNY Central Parity ] 7.1627, down 7 pips (prev: 7.1620; official close: 7.1684; overnight: 7.1671)    [Raw Materials (USD/ton) ]   - Ethylene Asia: CFR NE Asia 850, CFR SE Asia 860    - Propylene NE Asia: FOB Korea avg 750, CFR China avg 800    - North Asia LPG CIF: Propane 534-536, Butane 504-506    - South China LPG July arrival: Propane 583-593, Butane 540-550    - Taiwan LPG CIF: Propane 534-536, Butane 504-506    [ LLDPE US Dollar Market Price ] Film : USD 880-930 / ton ( CFR Whampoa ) ; Injection molding : $ 940 / ton ( CFR Dongguan ) ;   [ HDPE US Dollar Market Price ] Film : USD 910-930 / ton ( CFR Whampoa ) ; Hollow : USD 860-870 / ton ( CFR Whampoa ) ;   [ LDPE U.S. dollar market price ] Film : USD 1105-1120 / ton ( CFR Yantian ) ; Coating : USD 1350 / ton ( CFR Whampoa )   [ PP US dollar market price ] Homogenization : $ 935-975 / ton ( CFR Huangpu ) ; Copolymerization : USD 965-995 / ton ( CFR Whampoa ) ; Film material : $ 1000 / ton ( CFR Huangpu ) ; Transparency : USD 1085 / ton ( CFR Whampoa ) ; Pipe : USD 1160 / ton ( CFR Shanghai ).  

Brussels-based waste management group Chemical Recycling Europe (CRE) has announced the publication of a framework that it says will help a wide range of stakeholders assess the environmental performance of chemical recycling processes.   CRE unveils framework to standardise environmental assessments of chemical recycling technologies (Photo: PantherMedia/ KateNovikova)   Working with US consultancy and software provider Sphera , CRE said the framework was designed to “evaluate key environmental indicators such as greenhouse gas emissions, energy demand, and resource efficiency”.The 73-page guide “provides methodological clarity and practical recommendations tailored to the specificities of chemical recycling, contributing to greater consistency in environmental reporting and comparability across technologies”, it added.The document highlights that, of the more than 30 mn t of post-consumer waste plastics generated in 2022, less than 0.2 mn t was chemically recycled – a situation that needs to change.“While many life cycle assessments (LCAs) have been performed of chemical recycling technologies to better understand their environmental performance, there is a need for a standard set of guidelines to ensure that LCAs provide consistent and meaningful results that can be used to improve decision-making,” the group said.Describing the publication of the framework as a “milestone”, CRE said it marked “a key step in advancing transparent and science-based assessment methodologies for chemical recycling technologies”.The waste management group added that the LCA Guideline is “designed to support stakeholders across the plastics value chain in accurately assessing the environmental performance of chemical recycling processes.”

【International News Digest】 Raw Materials - The new plastic is completely soluble in seawater — no micro-particles Automotive - Syensqo Unveils Bright Orange Flame-Retardant PPA for EV Safety Applications Corporate - Sulzer inaugurates biopolymer engineering and scale-up center Macro - Trump Team Considers Meeting with Iran This Week Price - USD/CNY Central Parity Rate at 7.1746, Up 43 Pips International News Details The new plastic is completely soluble in seawater — no micro-particles Japanese scientists from the The Center for Research on New Materials (RIKEN) was established a new type of plastic, is a recyclable material that dissolves in seawater, leaving no residue behind. The plastic, called alkyl SP2 has high strength, can be molded at temperatures above 120°C, and can be transformed into anything from hard shells to soft films. At the same time, unlike most biodegradable plastics, this material does not leave behind any microplastic particles. It can completely dissolve in seawater within 2-3 hours. Syensqo Unveils Bright Orange Flame-Retardant PPA for EV Safety Applications Belgian materials giant Syensqo has launched Amodel PPA HFFR-4133 Orange (OR), a flame-retardant polyphthalamide designed for electric vehicle (EV) safety applications.This advanced material features a stable, vibrant orange hue that retains brightness even after prolonged high-temperature exposure, addressing growing industry demands for safety and visibility in critical EV components like connectors and busbars. Sika launches PU adhesive for primerless auto glass replacement Sika launches Sikaflex® P2G Premium, a high-performance solution designed to complement their primerless auto glass replacement (AGR) product line. Sikaflex® P2G Premium offers a 3-hour minimum drive-away time (MDAT), optimized performance at elevated temperatures, short cut-off string, plus excellent decking and glass-slip properties. Sulzer Inaugurates Biopolymer Engineering and Scale-Up Center Sulzer Ltd. (Winterthur, Switzerland) opened its fourth location in Switzerland. The Innovation Technology Hub (InTecH) in Winterthur Töss will further enhance Sulzer’s research and development capabilities in advanced biopolymer engineering and recycling. With 3,150 m2 of laboratory and research space, this strategic investment is part of the company’s ongoing commitment to sustainable innovation. Syensqo and Fairmat enter collaboration for carbon-fiber recycling SyensqoS.A. (Brussels, Belgium) and Fairmat S.A.S., a French company that turns carbon fiber into scalable, high-performance recycled materials, have entered into a collaboration agreement. Under this agreement, Fairmat will recycle Syensqo’s U.K. carbon fiber prepreg waste, transforming it into valuable resources for the production of new products in the sports, energy, mobility, and electronics markets.  OMAN：Government support fuels growth of plastics processing sector Two years ago, Oman and its state-owned petrochemicals group OQ launched the Labayn incentive programme – a scheme designed to encourage plastics processing companies to set up operations in the Gulf state. The initiative appears to be bearing fruit. So far, 18 companies from Europe, the Middle East, India, China, and Southeast Asia have committed to investing, said Abdul Rahman Al-Tamtami, OQ’s vice-president of global marketing, speaking at a press conference in Rotterdam in the Netherlands.   Overseas Macro Market Updates   BOJ Maintains Rates, Plans Slower Bond Tapering Next Year: The Bank of Japan kept its benchmark interest rate at 0.5% and will slow bond purchase tapering to ¥200 billion per quarter from next fiscal year (current pace: ¥400 billion/month), in line with market expectations. Trump Team Considers This Week’s Iran Talks: Axios reported the White House is weighing talks with Iran this week on the nuclear deal and Israel ceasefire. A U.S. official confirmed discussions on the proposal, with the U.S. reportedly using potential supply of bunker-busting bombs to Israel as a bargaining chip. Lagarde Urges Action to Boost Euro’s Global Role: ECB President Christine Lagarde called for decisive steps to strengthen the euro’s role in the international monetary system, emphasizing Europe must solidify geopolitical credibility, economic resilience, and institutional frameworks.   Price Information   【USD/CNY Central Parity Rate】The central parity rate of the Chinese yuan against the U.S. dollar was set at 7.1746, up 43 pips from the previous trading day. The previous day's central parity rate was 7.1789, the official closing price was 7.1802, and the overnight closing price was 7.1818. 【Raw Materials - USD Market Prices】 Ethylene (Asia): CFR Northeast Asia: $800/ton, up $10/ton CFR Southeast Asia: $850/ton Propylene (Northeast Asia): FOB Korea average: $710/ton, down $10/ton CFR China average: $760/ton North Asia LPG (CIF): Propane: $581-583/ton Butane: $551-553/ton South China LPG (July arrival, CIF): Propane: $593-603/ton Butane: $540-550/ton Taiwan LPG (CIF): Propane: $581-583/ton Butane: $551-553/ton 【LLDPE - USD Market Prices (CFR)】 Film grade: $915/ton (Huangpu) Injection molding grade: $960/ton (Dongguan) 【HDPE - USD Market Prices (CFR)】 Film grade: $910-915/ton (Huangpu), up $10/ton Hollow grade: $860/ton (Huangpu), down $5/ton 【LDPE - USD Market Prices (CFR)】 Film grade: $1,035/ton (Xiamen) 【PP - USD Market Prices (CFR)】 Homopolymer: $885-935/ton (Huangpu) Copolymer: $955-1,040/ton (Huangpu) Film grade: $1,025-1,090/ton (Huangpu) Transparent grade: $1,065/ton (Huangpu), down $20/ton Pipe grade: $1,160/ton (Shanghai)

International News Digest: Raw Material News-Eastman loses $375M DOE grant for Texas plastics recycling facility； Auto News-Asahi Kasei launches new series of Sunfort™ dry film photoresist； Packaging News- KHS Partnership with Husky to launch lightweight PET bottle ； Macro News-Institution: The growth rate of the global smartphone market has declined for three consecutive quarters.； Price information-The central parity rate of the RMB against the US dollar was reported at 7.1869, up 21 points.   The following is an international news update: 1. Eastman loses $375M DOE grant for Texas plastics recycling facility； After a U.S. Department of Energy (DOE) nreview, specialty materials company Eastman has lost a $375 million grant it had been awarded in March 2024 to help cover the costs of building its second molecular recycling facility for plastics in the country—a $1.2 billion project—in Longview, Texas, where the company has maintained an operational presence for decades. 2. KHS Partnership with Husky to launch lightweight PET bottle German packaging machinery specialist KHS , in close collaboration with Canadian injection moulding machine manufacturer Husky , has unveiled an ultra-lightweight PET bottle for still beverages.Currently knows as Factor 101, the bottle weighs just 5.89 g while holding 591 ml – a 30% material reduction compared to standard lightweight bottles on the US market, the company said. 3. Sulzer to supply proprietary equipment to Emirates Biotech for PLA facility in UAE Sulzer to supply proprietary equipment to Emirates Biotech for PLA facility in UAESulzer has recently signed a supply contract with Emirates Biotech to provide the proprietary equipment that will serve as the technological core of the world-scale Polylactic Acid (PLA) production facility being built by Emirates Biotech in the United Arab Emirates. This follows a licensing agreement signed in December 2024, reinforcing the strategic partnership between the two companies. 4. Asahi Kasei Launches New Sunfort™ Dry Film Photoresist Series According to foreign media reports, Asahi Kasei Corporation (Asahi Kasei has developed the Sunfort™ dry film photoresist TA series, aimed at meeting the growing demand in the advanced semiconductor packaging field for applications such as artificial intelligence (AI) servers. This product is positioned as a strategic product within Asahi Kasei's materials division, aiming to enhance its influence in the rapidly growing next-generation chip packaging market. The dry film utilizes traditional step exposure systems and laser direct imaging (LDI) systems, providing ultra-high resolution that helps transfer circuit patterns onto substrates during the packaging process, thereby improving the performance and precision of back-end processes.  5. BASF launches €6B sale of coatings business BASF SE has launched the previously announced sale of its coatings business, with the potential deal valued at about €6 billion, according to a Bloomberg report May 30. In recent weeks, the company has sent information on the business to potential bidders, the report said. 6. EUROPEN launches interactive guidebook to help businesses navigate EU PPWR EUROPEN has released a new interactive guidebook designed to help businesses navigate the evolving requirements of the EU Packaging and Packaging Waste Regulation (PPWR).   The following is overseas macro market information: Overseas macro market information: 【Minutes of the Federal Reserve 's May Monetary Policy Meeting.】 tend to act cautiously and predictably in terms of policy easing. He believes that it is not the time to shift policy to an expansionary stance. The policy is in a favorable position and can respond decisively when necessary. Lowering the cash rate is an appropriate response to global risks. The reason for the interest rate cut of 25 basis points is higher than that of 50 basis points. He believes that policy is ' somewhat restrictive ' at the current interest rate level. 【Goldman Sachs : Aluminium prices may fall to $ 2,100 a tonne due to accelerating Indonesian supply.】 Goldman Sachs said it expects aluminium prices to fall to a low of $ 2,100 a tonne by early 2026, a level that would suspend overinvestment in Indonesian smelting capacity. Three 500,000 tonnes smelters in Indonesia will be operational by mid-2026, earlier than expected, according to Goldman Sachs. The increase in production will lead to a million tons of excess supply in 2026, the largest excess since 2020. 【Bank of Japan Governor 's dovish remarks push the yen lower in early trading.】The yen weakened against most other G10 and Asian currencies in early trading due to dovish signs of earlier remarks by Bank of Japan Governor Takeda and Masahiro. Ueda said that uncertainty, including the prospect of trade policy, is still high, and this uncertainty may continue even if the tariffs are determined. The Bank of Japan will not pre-set interest rate policy, nor will it promote interest rate hikes in order to make room for future interest rate cuts. The US dollar rose 0.3 % against the Japanese yen in early trading, the euro rose 0.1 % against the Japanese yen, and the New York dollar rose 0.2 % against the Japanese yen. 【Institution: The growth rate of the global smartphone market has declined for three consecutive quarters.】 The latest research from Canalys shows that in the first quarter of 2025, the global smartphone market achieved only 0.2% growth, with shipments reaching 296.9 million units. As the phased peak of device replacements comes to an end and manufacturers seek healthier inventory levels, the growth rate of the global smartphone market has declined for three consecutive quarters. Samsung ranked first, with shipments reaching 60.5 million units; Apple ranked second, with shipments of 55 million units, capturing a 19% market share; Xiaomi remained in third place, with shipments of 41.8 million units and a market share of 14%. Vivo and OPPO ranked fourth and fifth, respectively, with shipments of 22.9 million units and 22.7 million units. 【Trump says Iran will not be allowed to conduct any uranium enrichment activities.】According to U.S. media reports on June 2, U.S. Middle East envoy Wittekov proposed a new plan regarding the Iran nuclear issue on May 31, which would allow Iran to conduct limited low-concentration uranium enrichment activities for a certain period of time. However, U.S. President Trump later denied this statement, stating that no uranium enrichment activities would be allowed for Iran. 【Japan 's 10-year bond auction is in hot demand, and Thursday 's 30-year auction is the next test.】 In this JPY 2.6 trillion 10-year bond auction, the bidding multiple jumped from 2.54 last month to 3.66, far exceeding the average level of the past year. Investors pay close attention to Thursday 's 30-year auction, which will determine whether the market is ready to meet the pain of normalization after the Bank of Japan withdraws from the ultra-loose policy. 【OECD once again lowered its global economic growth forecast, which is expected to be 2.9 % this year and next. 】 OECD lowered its global economic growth forecast for 2025 from 3.1 % to 2.9 %. The forecast for global economic growth in 2026 is lowered from 3 % to 2.9 %. The U.S. economic growth forecast for 2025 was lowered from 2.2 % to 1.6 %. Japan 's economy is expected to grow by 0.7 % in 2025 and 0.4 % in 2026. The UK 's economy is expected to grow by 1.3 % in 2025 and 1 % in 2026. Germany 's economy is expected to grow by 0.4 % in 2025 and 1.2 % in 2026. OECD said that easing trade tensions is the focus of global policy. Protectionism exacerbates inflationary pressure. The OECD stated that easing trade tensions is a global policy priority. Protectionism has exacerbated inflationary pressures. Price Information: 【Central parity rate of RMB vs USD】 The RMB's central parity rate against the US dollar is set at7.1869, up by 21 points; the previous trading day's midpoint was 7.1848, the previous trading day's official closing price was 7.1991, and the overnight session closed at 7.1972. 【Upstream raw material USD market prices】 Ethylene Asia:CFR Northeast Asia $780/ton; CFR Southeast Asia $850/ton. Propylene Northeast Asia:The average FOB price in South Korea is 745 USD/ton, down 5 USD/ton; the average CFR price in China is 775 USD/ton, down 10 USD/ton. North Asia frozen cargo CIF, Propane550-552 USD/ton; Butane 520-522 USD/ton. South China frozen goods CIF prices in early July: Propane at $602-612/ton; Butane at $537-547/ton. Taiwan region frozen cargo landed price, propane550-552 USD/ton; butane 520-522 USD/ton. 【LLDPE USD market price】 Film:$875/ton (CFR Huangpu), down $5/ton. Injection molding:USD 970/ton (CFR Dongguan) 【HDPE USD market price】 Thin film:$900-920/ton (CFR Huangpu), down $5/ton. Hollow:865-870 USD/ton (CFR Huangpu); 【LDPE USD market price】 Film: (Note: The word "" translates directly to "film" in English, but without additional context, it's not clear if this is referring to a specific type of film or if there should be more to the sentence. Therefore, only "Film" is provided as a direct translation.) 1025-1035 USD/ton (CFR Huangpu), down by 5 USD/ton; 【PP USD market price】 Uniform aggregation:$890-950/ton (CFR Huangpu), down $15/ton. Copolymerization:955-1060 USD/ton (CFR Huangpu); Membrane material:1025-1090 USD/ton (CFR Huangpu); Transparent: USD 1085/ton (CFR Huangpu), down USD 10/ton. Pipes:1160 USD/ton (CFR Shanghai).  

International News Digest: Raw Material News - Mitsui Chemicals Considers Splitting off Basic & Green Materials Business Auto News-China's auto export value in April reached $19.39 billion, up 6.9% month-on-month and 5.3% year-on-year Electronics and Electrical News- Sony Moves Manufacturing of High-End Xperia Phones to Third-Party OEMs Toy News - Pop Mart Suspends Labubu Sales in the UK Macroeconomic News - Trump team considers “Plan B”as reciprocal tariffs are blocked Price information - CFR Northeast Asia $780/ton; CFR Southeast Asia $850/ton   The following is the detailed international news:    1. Tariffs, a major variable! U.S. Court of Appeals: Approved! According to the CCTV News, on May 29th local time, the U.S. Court of Appeals for the Federal Circuit approved the request from the Trump administration to temporarily suspend the previous ruling made by the U.S. Court of International Trade, which prohibited the execution of the Trump administration's executive order to impose tariff measures on many countries based on the International Emergency Economic Powers Act. The U.S. Court of Appeals for the Federal Circuit also ordered both parties to submit written arguments on the issue of blocking the imposition of tariffs, with relevant documents to be submitted by early next month. The court will then decide on the next steps. U.S. government data released Thursday showed that U.S. economic activity contracted at a 0.2% annual rate in the first quarter of this year, marking its first decline in three years, disrupted by the trade war initiated by former President Trump. Additionally, affected by tariffs, an increasing number of U.S. retailers are planning to raise prices. A survey report released by Germany's Allianz Group shows that 54% of American companies are addressing the cost increases caused by U.S. tariff policies by raising prices.   2. Mitsui Chemicals Considers Splitting off Basic & Green Materials Business Mitsui Chemicals, Inc.  has begun to consider splitting off its Basic & Green Materials business ("B&GM"), which is primarily engaged in petrochemicals, in order to transition to a more robust business structure and promote the shift to green society, with a view to pursuing collaboration with other companies as well as integration and transformation. Scope of the consideration：Phenols, Industrial Chemicals, Sustainable Feedstocks, Licensing, Prime Polymer Co., Ltd. (Polyolefins), Polyurethanes While we will strive to realize the ideal vision as early as possible, we will split off B&GM and establish the business entity—which will serve as a core in future integration and transformation—by around 2027.    3. ExxonMobil to sell French subsidiary Esso S.A.F.  ExxonMobil France Holding has entered into exclusive negotiations with North Atlantic France SAS for both the proposed sale of its 82.89% majority shareholder interest in Esso Société Anonyme Française SA (Esso S.A.F.), as well as the proposed sale of ExxonMobil Chemical France SAS.With the exception of those part of the previously announced redundancy plan, all of the approximately 1,350 employees in France will be retained and remain on the same employment terms and conditions.   4. The production of the rubber and plastics industry in Russia decreased by 1.6% year-on-year from January to April, with a drop of 4.7% in April alone According to the data from the Federal State Statistics Service of Russia (Rosstat), the production of rubber and plastic products in Russia decreased by 1.6% year-on-year from January to April 2025. The industrial production index in April 2025 increased by 1.5% compared to the same period in 2024, and the cumulative index from January to April 2025 was 101.2% (a year-on-year increase of 1.2%). Compared to March 2025, the industrial production index fell by 4.2% month-on-month, dropping to 95.8%. Business managers pointed out that the shortage of personnel is still one of the main factors hindering the completion of production plans. The negative evaluations are dominant in the mining industry (-24.1%) and processing and manufacturing industry (-18.3%). Nevertheless, most managers are neutral, showing a cautious attitude towards the current business situation, demand, and production growth potential.   5. Star Plastics® offers PC/ABS FR compounds as a cost-effective alternative to ABS FR Star Plastics® is helping manufacturers navigate ongoing supply chain disruptions and cost volatility associated with ABS flame retardant (FR) materials. In response to the scarcity and rising prices of antimony – a key component in ABS FR – Star Plastics is offering its high-performance PC/ABS FR compounds as a dependable and cost-effective alternative.   6. Sony Moves Manufacturing of High-End Xperia Phones to Third-Party OEMs Sony already uses third-party manufacturers to produce its phones. This has been a strategy adopted for the mid-range smartphones so far. However, a new report indicates that the brand will now expand the strategy to its high-end devices. According to a Japanese news outlet, this is not a temporary move. It is likely a long-term strategy. You can no longer find “smartphones” on the list at Sony’s production sites in Thailand. Historically, three manufacturing sites were involved in Sony’s smartphone production. Two are in Thailand and one is in China. None of them lists “smartphones” anymore. This means that the company is completely obliterating the smartphone production of its sites. This does not mean an end, as it is now relying on third-party OEMs for such a process.   7 China's auto export value reached 19.39 billion US dollars in April, increased by 6.9% month-on-month and 5.3% year-on-year. According to data from the General Administration of Customs compiled by the China Association of Automobile Manufacturers, in April 2025, the total value of automobile imports and exports was $23.09 billion, up 6.8% month-over-month and down 2.2% year-over-year. Among these, the import amount was $3.7 billion, up 6.3% month-over-month and down 28.6% year-over-year; the export amount was $19.39 billion, up 6.9% month-over-month and up 5.3% year-over-year. From January to April 2025, the cumulative value of national automobile imports and exports was $81.88 billion, down 5.2% year-over-year. Among these, the import amount was $13.27 billion, down 34.5% year-over-year; the export amount was $68.61 billion, up 3.7% year-over-year.   8. Pop Mart suspends Labubu sales in the UK Recently, Pop Mart's latest LABUBU 3.0 series has sparked a buying frenzy in various global locations such as the United States, the United Kingdom, and Italy. Amidst the intense demand, a "major brawl" reportedly broke out at the Westfield Stratford shopping center in London. To prevent the situation from escalating, Pop Mart announced that, out of safety concerns, the Labubu series products will be temporarily removed from all UK stores.   Overseas macro market information:   【The Japanese government announced the lifting of partial sanctions on Syria】On May 30, Japan's Chief Cabinet Secretary Yoshimasa Hayashi stated that the Japanese government has lifted some sanctions on Syria. Currently, there are no detailed announcements regarding the specifics of the lifted sanctions on the official websites of various Japanese government departments. 【The United States plans to increase arms sales to Taiwan】 According to Reuters, the United States plans to increase arms sales to Taiwan, and Trump focuses on arms sales to Taiwan beyond his first term. 【Iranian Foreign Minister: Iran "Not Sure" About Approaching Deal with US】In response to recent media speculation about an upcoming agreement between Iran and the US, Iranian Foreign Minister Araghchi said on the 29th that Iran was "not sure if we have reached that point." Araghchi posted on social media that day, stating that Iran sincerely seeks a diplomatic solution that benefits all parties. However, achieving this goal requires an agreement that comprehensively lifts all sanctions against Iran and safeguards Iran's nuclear rights, including uranium enrichment. The path to reaching an agreement lies at the negotiating table, not in the media. 【Trump team considers “Plan B”as reciprocal tariffs are blocked】This plan may proceed in two steps: in the short term, the administration could invoke Section 122 of the Trade Act of 1974 to impose a maximum 15% tariff on a wide range of global economies for a period of 150 days. The second step would involve using Section 301 of the same law to establish customized tariffs for each major trading partner within those 150 days. 【Delta Air Lines to Resume Direct Flights Between Shanghai and Los Angeles】Bringing Weekly China-US Flights to 17 Delta Air Lines announced today that it will resume direct flights between Shanghai and Los Angeles starting June 2, operating three times a week. This will increase Delta’s weekly China-US flights to 17. Currently, the recovery of China-US routes is slow, with the number of flights restored being less than 30% of pre-pandemic levels. 【China-US shipping is recovering, but signs of a slowdown in container booking volumes are emerging】 This is attributed to the mutual tariff reductions that began earlier this month. The shipping price for a standard 40-foot container from Shanghai to Los Angeles has increased by nearly 17% to $3,738, marking the largest weekly relative increase this year. As of the week ending May 29, the shipping rate per container is still nearly one-third lower than the peak value in January of this year, but higher than the low point of $2,487 before Trump announced the "liberation day" tariffs at the end of March. However, the volume of container bookings has declined somewhat. Data from Vizion and Dun & Bradstreet show that the total bookings for the first three days of this week equated to approximately 106,000 twenty-foot equivalent units (TEUs). This is a decrease from 137,000 TEUs during the same period last week. Globally, the week starting May 19th was the highest booking week of the year so far. 【Volkswagen CEO stated that the company is in direct negotiations with the U.S. government regarding tariff issues】 According to reports, Volkswagen CEO Oliver Blume mentioned in an interview that the company is directly consulting with the U.S. government to resolve the tariff dispute. Blume stated that if the tariff dispute is resolved, Volkswagen is willing to make "additional, large-scale" investments based on its existing investments in the U.S.   Price information: 【Central parity rate of RMB against USD】 The central parity rate of the renminbi against the US dollar was reported at 7.1848, up 59 points; the previous trading day's central parity rate was 7.1907, the previous official closing price was 7.1916, and the overnight closing price was 7.1865. 【 Upstream raw material US dollar market prices】 Ethylene Asia: CFR Northeast Asia $780/ton; CFR Southeast Asia $850/ton. Acrylic Northeast Asia: FOB Korea average price 750 USD/ton; CFR China average price 785 USD/ton. North Asia cryogenic cargo, propane at $550.5-$552.5 per ton; butane at $520.5-$522.5 per ton. South China frozen cargo CIF prices for June: Propane 623-633 USD/ton; Butane 563-573 USD/ton. The CIF price for frozen goods in Taiwan is propane $550.5-$552.5/ton; butane $520.5-$522.5/ton. 【LLDPE US Dollar Market Price】 Film: $880/ton (CFR Huangpu); Injection molding: 970 USD/ton (CFR Dongguan); 【HDPE USD market price】 Film: $905-925 per ton (CFR Huangpu). Hollow: USD 865-870 per ton (CFR Huangpu); 【 LDPE USD market price】 Film: 1025-1040 USD/ton (CFR Huangpu); 【PP USD market price】 Homopolymer: $905-$950/ton (CFR Huangpu); Copolymer: $955-$1060/ton (CFR Huangpu); Material: $1025-$1090/ton (CFR Huangpu); Transparent: $1095/ton (CFR Huangpu) Pipe material: 1160 USD/ton (CFR Shanghai).  

April 25, 2025 The Ministry of Economy and Finance issued Order No. 1125, It has been decided to continue imposing duties on oriented polyester film with a thickness of more than 10 microns originating from China, Indonesia, and Thailand. Impose a five-year anti-dumping tax on films(See attached table), among them,The tax rate in China ranges from 2.50% to 25.04%.The Korean tariff numbers of the products involved are 3920.20.0000 and 3921.90.2000. The measures take effect from the date of the announcement. On January 7, 2013, South Korea initiated an anti-dumping investigation on oriented polypropylene films imported from China, Indonesia, and Thailand. On December 20, 2013, South Korea officially imposed anti-dumping duties on the products from these three countries. Subsequently, South Korea conducted a sunset review, and on August 23, 2019, it made an affirmative ruling and extended the duration of the duty collection. On April 26, 2024, South Korea launched a second sunset review investigation on the products from these three countries. On February 20, 2025, the South Korea Trade Commission made a final ruling on the second sunset review, recommending the continued imposition of anti-dumping duties. Appendix: Final ruling tariff table for the second sunset review of the anti-dumping case on import-oriented polypropylene film from China by South Korea

On April 15th, U.S. time, the White House website reiterated that due to China's retaliatory measures, goods exported from China to the U.S. are now facing tariffs of up to 245%. As early as April 11, a spokesperson for China's Ministry of Commerce stated that the U.S. imposition of excessively high tariffs on China has turned into a numbers game, holding no practical economic significance. If the U.S. continues with this tariff numbers game, China will not pay it any heed. Actually, the latest statement from the White House "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions." That is, the maximum (up to) tariff that goods going from China to the United States might face could be 245%, not all goods. The number is not a newly imposed tariff, but the result of adding the 100% tariff on some goods (such as syringes, needles) during the 2018 trade war to the additional 145% tariff in 2025. For instance, The New York Times previously illustrated that the tariffs on certain medical products could reach up to 245% due to the==== rule. Attached figure.

The Trump administration promoted a trade investigation led by the Department of Commerce.Semiconductors and pharmaceuticalsThe plan to impose import tariffs. The measures announced on Monday in the Federal Register are a prelude to the imposition of tariffs and could potentially expand Trump's global trade war. The Ministry of Commerce stated in two notices that it has initiated an investigation"Semiconductor and semiconductor manufacturing equipment" "Medicines and pharmaceutical ingredients, including finished pharmaceutical products"The impact of imports on U.S. national security. These investigations, which began on April 1st, were ordered under Section 232 of the Trade Expansion Act and may last for months. According to the law, the Secretary of Commerce should submit the investigation results within 270 days, but Trump and other officials have indicated that these tasks might be concluded more quickly. Trump has long condemned the national security threat posed by foreign-made pharmaceuticals and chips and has threatened tariffs on imports to revive U.S. manufacturing of these products. But these tariffs also have the potential to seriously disrupt supply chains and raise costs for Americans. From cars to airplanes, from mobile phones to consumer electronics, these products all rely on semiconductors, with global semiconductor sales exceeding $600 billion. Currently, the supply chain is still feeling the chaotic effects caused by the COVID-19 pandemic and may now face new impacts from U.S. tariffs. Trump's frequent shifts in his comprehensive tariff plans have sent mixed signals to the markets, businesses, and trade partners, who are striving to negotiate with the White House to reach dozens of new agreements aimed at reducing trade imbalances. Trump said on Monday that he expects to impose tariffs on imported drugs “sooner rather than later.” Trump said to the reporter:"Listen, I'm a very flexible person. I don't change my mind, but I am very flexible." "I've been helping Tim Cook and the whole business recently," he continued, referring to the CEO of Apple Inc."I don't want to hurt anyone. But the end result is that our country will achieve greatness."However, Trump said last weekend that the exemption on tariffs for technology products (seen as a boon for tech giants like Apple and Nvidia) would be temporary, adding that these imports would eventually face different, industry-specific tariffs. The Ministry of Commerce's investigation into semiconductors has a wide scope, as it aims to assess the import situation of both traditional chips and advanced chips sought after for artificial intelligence applications. According to government notifications, this investigation will cover all semiconductors, equipment used to manufacture semiconductors, and electronic products that contain these components. The imposition of tariffs on the semiconductor industry could affect numerous companies that export billions of dollars worth of microprocessors and related products to the United States each year. These measures could also increase the cost of Trump’s vision for expanding domestic semiconductor production, especially if import duties are levied on chip manufacturing equipment from companies such as ASML Holding NV. Based in the Netherlands, ASML is a leading supplier of advanced lithography machines, which are used to produce the smallest computer chips utilized in artificial intelligence and other sensitive applications. Analysts warn that bringing chip manufacturing to the US will require years of arduous effort. Separate drug investigations will examine imports of all drugs, including generics and generic finished products as well as materials used to make those drugs. Investigators will also look into imports of key pharmaceutical inputs. Tariffs will also hit global pharmaceutical giants like Merck & Co. and Eli Lilly & Co., which have dozens of production bases around the world. Before tariffs may be imposed in the U.S., pharmaceutical companies have announced significant investments in the United States. Recently, Swiss pharmaceutical company Novartis AG announced plans to invest $23 billion in the United States over the next five years, following similar commitments from Eli Lilly, Merck, and Johnson & Johnson. However, experts warn that this is likely not enough to mitigate the impact of tariffs. Leerink Partners analyst David Risinger said in a note to clients ahead of the announcement, "We believe the companies impacted cannot quickly fix the problem. Reregistration would take years and be very costly." In this already the most expensive market in the world, pharmaceutical companies will face two choices: either absorb the costs brought by potential tariffs or raise drug prices. Trump has repeatedly criticized American pharmaceutical companies for their reliance on overseas production, and he is breaking with tradition that has lasted for decades. For many years, the pharmaceutical industry has managed to avoid trade wars and has been protected by international agreements, which largely shield medicines from tariffs on humanitarian grounds.    

According to CCTV News, on April 8th local time, US President Trump announced in a speech that the United States will impose tariffs on pharmaceuticals. Trump stated that the United States does not produce its own medications and other health-improving products. The prices paid for drugs in the U.S. are often many times higher than those in countries that produce pharmaceuticals. Trump believes that once tariffs are imposed on medications, pharmaceutical companies will establish factories in the U.S. because it is the "largest market." European pharmaceutical companies warned at a meeting with the President of the European Commission on the 8th local time that US tariffs will accelerate the trend of the industry moving from Europe to the US. EFPIA, a pharmaceutical industry trade lobbying group whose members include European pharmaceutical giants Bayer, Novartis, and Novo Nordisk, said that it has called on the EU President to push for "rapid and fundamental action" to mitigate the risk of an exodus to the US.

While the Trump administration was wielding the tariff baton, American toy giants were not only diversifying their production bases but also quietly launching a "cost revolution"! The "American Girl" dolls from Mattel's American Girl brand are on display at the American Girl Place in Manhattan, New York. The Trump administration escalated the trade war: imposing a 10% base tariff on almost all countries and adding heavy taxes on dozens of countries including China and Vietnam. As the two pillars of U.S. toy imports, Chinese products face a 54% overall tax rate (with an additional 34%), while Vietnamese toys are hit with a 46% tariff. According to the U.S. Toy Association, 77% of imported toys in the U.S. come from China, with Vietnam following Mexico in third place. Industry experts warn that tax rates far exceeding expectations will lead to a surge in toy prices, with the initial impact likely coinciding with the back-to-school season this fall. "The entire industry is in chaos," said Greg Ahearn, president of the Toy Association. "This will have a huge negative impact on both consumers and the industry." The Dilemma of Enterprises in Supply Chain Earthquakes Toy giants Hasbro and Mattel had predicted in 2025 that the impact of a 20% tariff on China would be included in their plans to shift production to Vietnam, Indonesia, and India. However, the new tariff policy has resulted in rates of 46%, 32%, and 26% for these three countries, respectively. Eric Handler, an analyst at Roth Capital, pointed out: "The transfer of production has lost financial feasibility, and consumers will soon see price increases." "Hey Buddy Hey Pal" company's "Magic Egg Decorator" relies on the Asian supply chain. However, in reality, China announced on Friday that it will impose a 34% retaliatory tariff on the US, exacerbating trade tensions. The capital market "votes with its feet" in advance. The tariff shockwave has swept through Wall Street: Mattel's stock plummeted 16.5% on Thursday, Hasbro dropped 12%, and Funko plunged 18%. Analysts predict that toy giants releasing quarterly reports this month may lower their profit guidance. This tariff storm is reshaping the global toy industry landscape. After Mattel and Hasbro transferred part of their production capacity to Vietnam in two years, production in China has significantly decreased, while new factories in Vietnam hesitate due to tariffs. US toy giant's strategy of diversifying manufacturing locations Mattel has also been diversifying its manufacturing operations away from China, currently sourcing products from seven countries. China accounts for about 40% of its procurement volume, down from the previous 50%. Due to the United States accounting for about half of the global toy sales, China's tariff risks are about 20% of the global cost of goods sold. UBS says this means that according to a 10% China tariff, Mattel's gross margin will be affected by 100 basis points, equivalent to about 12 cents per share. Mattel said that by 2027, the output of any country will not exceed 25% of its total output. Hasbro has been expanding its manufacturing operations to countries like Vietnam and India to reduce its dependence on China. The company's management has indicated that Indonesia may be the next stop. Hasbro, headquartered in Pawtucket, Rhode Island, currently sources products from eight countries, with China accounting for 50%, down from the previous 60%. The company aims to reduce this proportion to 40% by 2026. In comparison, the average for the entire toy industry is 80% to 85% of revenue coming from China. Mexico also imposes tariffs on certain goods, representing 2% of Hasbro's production. The company does not source any products from Canada. Reduce manufacturing costs Despite efforts by companies to reduce costs through renegotiating supplier contracts and simplifying packaging (such as Basic Fun’s release of trayless packages), Basic Fun********: "The 54% tariff could lead to a direct price increase of 50% at the consumer level, especially for toy products with single-digit profit margins. Cost passthrough is inevitable." Behind the hustle and bustle of the New York Toy Fair, buyers are frantically seeking alternatives. An unnamed Guangdong OEM factory manager revealed: "Walmart has asked us to reduce the thickness of plastic parts by 0.2 millimeters, but this can only offset 3% of the cost." Battery-free electronics, minimalist packaging toys, self-assembled daily necessities... These seemingly regressive consumer trends are actually the wisdom of businesses surviving in the global trade war. In the workshop of Abacus Brands, a Los Angeles-based educational toy company, CEO Steve Rad is showcasing a new matte packaging box: replacing the 30-cent plastic liner with a cardboard that costs only 7 cents. "Saving 3-4 cents at each spot can accumulate to offset the $10 increase in retail price," the company also plans to reduce the thickness of the paper used in the instruction manual, and expects to complete the supply chain adjustments this fall. Steve Rad, who designs science kits and other educational toys for older kids, is showcasing a newly improved matte box (left), which will replace its black molded plastic packaging with an improved cardboard material to help offset the cost of future tariffs. The plush toy giant Aurora World has tapped into the color economy. "Reducing the number of paint colors not only cuts material costs but also simplifies the labor process," admitted Gabriel Horikawa, general manager of the toy division. While these changes may not fully offset the impact of tariffs, they serve as a necessary buffer. Aurora was founded in Korea in the 1980s, and by going green, it has saved more than 3 million pounds of recycled plastic. Packaging Slimming: A Win-Win for Environmental Protection and Cost The classic toy brand Basic Fun has designed three packaging options for Tonka trucks: a traditional box with a display window, a tray without a box, and a minimalist paper price tag. The latter two options can save costs of $1.25 and $1.75 respectively, but CEO Jay Foreman admits, "This will reduce the product's appeal and is far from offsetting the tariffs on goods from China." The Art of Survival in the Fog of Policy Michael Matthias, CFO of American Eagle Outfitters, revealed that the company plans to reduce the production capacity ratio in China and Vietnam from 15%-20% each to single digits. CEO Jay Schottenstein admitted, "We faced similar challenges eight years ago, and we must remain flexible— you never know where the next round of tariffs will be aimed." Facing policy uncertainty, Peter Baum of Baum Essex in New York lamented, "This is the beginning of a global depression. An 80-year-old business run by five generations could be ruined." The company, which relocated its production capacity from China in 2019, is now facing another****in several Southeast Asian countries. In this trade war without gunpowder, enterprises are adopting meticulous "subtraction strategies" to find a niche in the tariff storm. When innovation becomes a forced choice, the evolution of consumption patterns may reshape the commercial landscape in the post-tariff era.

After being hit with a 46% tariff increase by the U.S., Vietnam is now in talks with the U.S. for a 0% tariff agreement. General Secretary Su Lin of the Vietnam Communist Party said that Vietnam is prepared to lower its tariffs to zero, and has asked the United States to do the same. Vietnamese official media reported that General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong, and U.S. President Donald Trump have agreed to discuss and sign a bilateral agreement to implement a zero-tariff commitment. Former President Trump posted on social media platform X: "I just had a conversation with General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong. It was very constructive. He told me that as long as Vietnam and the U.S. can reach an agreement, Vietnam is willing to reduce tariffs on the U.S. to 0. On behalf of the United States, I thank him and look forward to a formal meeting in the near future."

[Policy Background] On April 2, 2025, the U.S. government announced the imposition of "reciprocal tariffs" on Chinese goods imported into the United States. On April 4, 2025, the State Council Tariff Committee issued an announcement that starting from 12:01 on April 10, 2025, tariffs would be imposed on imported goods originating from the United States. The relevant matters are as follows: 1. An additional 34% tariff will be imposed on all imported goods originating from the United States based on the current applicable tariff rates. 2. The current bonded and preferential tax policies remain unchanged, and the additional tariffs imposed this time will not be exempted. 3. For goods that have been shipped from the place of departure before 12:01 on April 10, 2025, and are imported between 12:01 on April 10, 2025, and 24:00 on May 13, 2025, the additional tariffs stipulated in this announcement will not be imposed. The import of raw materials from the United States into China, subject to a 34% tariff, will have multi-faceted effects on domestic metallocene polyethylene. 1. Supply gap and price increase According to********statistics, North America is currently the world's leading producer of metallocene polyethylene, followed by Southeast Asia and Northeast Asia. In the North American and Southeast Asian production areas, ExxonMobil has a higher capacity share, followed by Dow; in the Northeast Asian production area, South Korea and China have leading capacities, but China's effective capacity is low, and regional supply shortages often rely on imports. North America is a resource-exporting region, with the United States having the largest export volume. According to statistics, the production capacity of polyethylene in the US is close to 7 million tons, and its products are mainly exported to South America, Southeast Asia, and China. According to a survey by Longzhong Information, imports from the US account for about 25% of China's polyethylene imports. In the short term, the rise in import costs from the US will have a certain impact on domestic polyethylene prices. The imposition of tariffs will directly increase the price of its products in the Chinese market, weakening their competitiveness. 2. Adjustment of Import Structure and Acceleration of Domestic Production Currently, China's imports of polyethylene from Majors mainly come from Singapore, Thailand, the Middle East, South Korea, and the United States. In the future, with the increase in import costs from the United States, the proportion of imports from other production areas will rise accordingly. In 2025, the ExxonMobil Huizhou facility will commence production, which will replace imports from Singapore and North America. Resources from North America and Singapore, aside from self-use, will flow to Europe and other countries. Additionally, as Singapore serves as a major transshipment hub, some goods from the Middle East and North America are stored and transshipped in this area; in the future, with the increase in import costs from the United States, the transshipment proportion in Singapore will also rise. Domestic companies (such as Sinopec, CNPC, and private enterprises) have already entered the production of metallocene polyethylene, but the capacity remains limited (in 2024, the domestic share was less than 30%). Tariff policies will encourage local companies to join the production of metallocene polyethylene, but technical barriers (such as severe product homogenization and a single product range) may slow down the substitution rate. 3. Increased costs of downstream raw materials and terminal products Based on the earlier situation of the United States imposing additional tariffs, the 10% tariff increase starting from March 4th in the United States mainly involves plastics products under Chapter 39 of the United States Harmonized Tariff Schedule (HTS), including plastic daily necessities such as storage boxes, children's toys, and bathroom products. According to statistics, in 2024, the proportion of China's export volume of plastic products to the United States in the total export volume fell to 20.48%, and the proportion of export value fell to 21.28%. After the United States imposed additional tariffs, the overall trend of China's plastic products export value to the United States will continue to decline. Domestic metallocene polyethylene is mainly used in agricultural film, food and daily chemicals, floor heating pipes, industrial packaging and other fields. Imported metallocene polyethylene is mostly used in high-end film fields, where the proportion of imported metallocene added in single material films is relatively high, leading to an increase in raw material costs and export costs, resulting in a significant reduction in enterprise profits, forcing downstream companies to accept high prices or seek alternative raw materials. Overall, the impact of US tariff increases on China's market for metallocene polyethylene products is multi-faceted. The rise in import costs from North America will inevitably lead to changes in global trade patterns. Currently, China imports most of its metallocene polyethylene from Southeast Asia and the Middle East. In recent years, imports of metallocene polyethylene from North America have been decreasing, so the impact of tariff increases on China is limited. In the short term, domestic high-end polyolefin products are still in the process of breaking through the "chokepoint," and complete substitution of imports will require time. However, the startup of the Exxon plant in Huizhou will reduce the import cost of China's metallocene polyethylene, easing the cost pressure on downstream enterprises. Although it will have some impact on the supply of China's metallocene polyethylene market in the short term, from a long-term perspective, it also provides an opportunity for the restructuring and transformation and upgrading of China's metallocene polyethylene industry.

The European Union plans to approve tariffs on US imports worth up to $28 billion this Wednesday, as a first countermeasure against US tariffs. The EU's first round of countermeasure tariffs will take effect in two stages, with some taking effect on April 15th and the rest taking effect a month later. As President Trump's tariff storm shakes global markets and economic prospects, EU countries will seek to form a united front in the coming days to determine the first round of countermeasures against U.S. tariffs. According to media reports, the European Union may approve the imposition of tariffs on US imports worth up to $28 billion this Wednesday, which will be the EU's first round of targeted retaliatory tariffs against the United States. This move will mean that the EU joins the ranks of China and Canada in fighting back against the United States. ▌The EU will counterattack the US The European Union's 27 countries are already facing a 25% import tariff on cars, steel, and aluminum products from the United States. Starting from this Wednesday, almost all other goods from the EU will also face a so-called "reciprocal tariff" of 20%. Currently, Trump's tariffs already cover about 70% of the EU's exports to the United States—totaling 532 billion euros (approximately 425.6053 billion yuan) according to last year's data. In the future, the EU's copper, pharmaceuticals, semiconductors, and timber may also be subject to tariffs. The European Commission, responsible for coordinating EU trade policy, will present a proposed list of U.S. products subject to increased tariffs to EU member states later on Monday local time. The list will include American meat, grains, wine, timber, and clothing, as well as items such as chewing gum, dental floss, vacuum cleaners, and toilet paper, with a total value of approximately $28 billion. It should be noted that this list is primarily aimed at responding to Trump's steel and aluminum tariffs, rather than addressing broader reciprocal tariffs. Bourbon has received more attention, revealing divisions within the EU. The European Commission has decided to impose a 50% tariff on American bourbon, prompting Trump to threaten retaliatory tariffs of up to 200% on EU alcohol beverages if the EU continues its actions. Major wine-exporting countries in Europe, France and Italy, have expressed concerns about this. Early Monday local time, Luxembourg will host a political meeting of the European Union—the first EU-wide political gathering since Trump announced comprehensive tariffs. Trade ministers from the EU's 27 member states will exchange views on the impact of the tariffs and how best to respond. EU diplomats said that the main purpose of this meeting was to convey a consistent message that the EU hoped to negotiate with Washington, D.C. of the United States on the removal of tariffs, but was ready to take countermeasures if the negotiations failed. ▌Divisions persist within the EU. Currently, among EU member states, there are differing opinions on how to respond to US tariffs. France has stated that the European Union should devise a comprehensive plan that goes far beyond tariffs for retaliation. French President Emmanuel Macron has suggested that European companies should suspend their investments in the United States until "the situation becomes clear". Ireland, which exports almost a third of its produce to the US, has appealed for a "thoughtful and measured" response, while Italy, the third largest EU exporter to the US, has questioned whether the EU should retaliate at all. "It's a difficult balance. Measures can't be too soft, or they won't bring the United States to the negotiating table, but they can't be too hard either, or they might lead to an escalation," said an EU diplomat. ▌The first round of EU countermeasures will be approved this week. So far, the negotiations between the EU and the US have not yielded any results. EU Trade Commissioner Maros Sefcovic said that he had a two-hour "frank" exchange with the US Trade Representative last Friday, and told them that the US tariffs were "destructive and unreasonable." The European Union's first round of counter-tariffs is scheduled for a vote this Wednesday and is expected to be approved with a high probability—unless 15 EU member states representing 65% of the EU's population vote against it, which is highly unlikely to happen. The European Union's first round of retaliatory tariffs will come into effect in two stages, with some taking effect on April 15, and the rest a month later. European Commission President Ursula von der Leyen will also hold discussions with the top executives of the steel, automotive, and pharmaceutical industries on Monday and Tuesday this week to assess the impact of tariffs and decide on the next steps to take.  

China's countermeasures are here! Today, in response to the US government's announcement of imposing "reciprocal tariffs" on Chinese goods imported to the US, China has issued countermeasures. The State Council's Tariff Commission announced that all imports originating from the United States will have an additional 34% tariff imposed on the current applicable tariff rates. In addition, the Ministry of Commerce and the General Administration of Customs have taken six coordinated actions, including adding 16 US entities to the export control management list, implementing export controls on medium and heavy rare earth items, suspending the import qualification of products from six US companies, adding 11 US companies to the unreliable entity list, initiating an investigation into the competitiveness of the import of medical CT tubes, and filing a lawsuit against the US "reciprocal tariffs" at the World Trade Organization. Impose an additional 34% tariff on all imported goods originating from the United States on top of the currently applicable tariff rates. On April 2, 2025, the US government announced that it would impose "reciprocal tariffs" on Chinese goods exported to the US. The US approach does not conform to international trade rules, seriously damages China's legitimate rights and interests, and is a typical unilateral bullying practice. In accordance with the Customs Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China, and other laws and regulations, as well as the basic principles of international law, with the approval of the State Council, the Tariff Committee of the State Council has decided to impose additional tariffs on imported goods originating from the United States starting from 12:01 a.m. on April 10, 2025. The relevant matters are as follows: 1. An additional 34% tariff will be imposed on all imported goods originating from the United States, based on the current applicable tariff rates. The current bonded and tax reduction/exemption policies remain unchanged, and the tariffs imposed this time will not be reduced or exempted. Goods that have been shipped from the place of departure before April 10, 2025, at 12:01 PM and imported between April 10, 2025, at 12:01 PM and May 13, 2025, at 11:59 PM will not be subject to the additional tariffs imposed by this announcement. Export controls on certain medium and heavy rare earth-related items Ministry of Commerce and General Administration of Customs Announcement No. 18 of 2025, announcing the decision to implement export controls on some medium and heavy rare earth-related items. A spokesperson for the Ministry of Commerce answered questions from journalists about the implementation of export controls on medium and heavy rare earth-related items, stating that in accordance with the "Export Control Law of the People's Republic of China" and other relevant laws and regulations, on April 4, the Ministry of Commerce, together with the General Administration of Customs, issued an announcement on the implementation of export control measures for 7 categories of medium and heavy rare earth-related items such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which will be formally implemented from the date of publication.   The Ministry of Commerce has added Scideate Company and 11 other U.S. companies to the unreliable entity list. The Ministry of Commerce today (4th) announced the inclusion of 11 American companies, including Skydio, in the unreliable entity list work mechanism. In order to safeguard national sovereignty, security, and development interests, and in accordance with relevant laws such as the "Foreign Trade Law of the People's Republic of China," the "National Security Law of the People's Republic of China," and the "Anti-Foreign Sanctions Law of the People's Republic of China," the unreliable entity list work mechanism, based on Article 2, Article 8, and Article 10 of the "Regulations on Unreliable Entity List," has decided to include Skydio and other 10 entities in the unreliable entity list and implement the following measures: I. Prohibition of the aforementioned enterprises from engaging in import and export activities related to China; 2. Prohibit the aforementioned enterprises from making new investments within China. Any matters not addressed in this announcement shall be carried out in accordance with the provisions of the Unreliable Entity List. This announcement will be implemented from the date of publication. The 11 U.S. entities listed on the Unreliable Entity List 1. Skydio Inc. BRINC Drones, Inc. Red Six Solutions Company Senix Company (SYNEXXUS, Inc.) 5. Firestorm Labs, Inc. 6. Kratos Unmanned Aerial Systems, Inc. 7. Havoc Artificial Intelligence Company (HavocAI) 8. Neros Technologies 9. Domo Tactical Communications 10. Rapid Flight LLC 11. Insitu, Inc. General Administration of Customs: Suspends the export qualifications of six U.S. companies involved in the incident to China The General Administration of Customs today issued announcements No. 54 and No. 55, deciding to suspend the import qualification of sorghum from one U.S. related company, the import qualification of poultry meat and bone meal from three U.S. related companies, and the import qualification of poultry meat products from two U.S. related companies, in order to protect the health of Chinese consumers and ensure the safety of China's livestock production due to the inspection and quarantine issues of the related imported products. The Ministry of Commerce: 16 American entities are included in the export control management list. In order to safeguard national security and interests, and fulfill international obligations such as non-proliferation, according to the relevant provisions of the "Export Control Law of the People's Republic of China" and the "Regulations on the Export Control of Dual-Use Items and Technologies" and other laws and regulations, the Ministry of Commerce has announced a decision to include 16 American entities in the export control management list, prohibiting the export of dual-use items to them. These entities may engage in actions that endanger China's national security and interests, and no exporter may violate the above regulations. Ministry of Commerce Spokesperson's Response to Media Inquiry on the Initiation of an Industrial Competitiveness Investigation into Imported Medical CT Tubes Commerce Ministry spokesperson answers journalists' questions on industrial competitiveness investigation into imported medical CT tubes. A reporter asked: We have noticed that the Ministry of Commerce website issued an announcement to initiate an industrial competitiveness investigation on imported medical CT tube assemblies. Could you provide some information on the relevant situation? Answer: This investigation was the first industrial competitiveness investigation initiated by the Ministry of Commerce in response to an application from the domestic industry. According to Article 36 of the "Foreign Trade Law of the People's Republic of China," the Ministry of Commerce may conduct investigations into the impact of imports on the domestic industry and its competitiveness. The preliminary evidence submitted by the applicant shows that the Chinese medical CT tube industry started relatively late and is in the development stage. The domestic industry faces difficulties in operations due to the impact of imported products, and its competitiveness is adversely affected. Based on this, the applicant requests the Ministry of Commerce to investigate the impact of imports on the domestic industry and its competitiveness. I would like to emphasize that the industrial competitiveness survey is a factual investigation. This survey is not aimed at specific countries and regions, and it does not affect normal trade. The investigating authority will fully protect the rights of all interested parties and conduct the investigation objectively and fairly according to the law.

On the afternoon of April 2, local time, President Trump of the United States signed two executive orders on the so-called "reciprocal tariffs" at the White House, announcing the establishment of a "minimum benchmark tariff" of 10% for all trade partners, and at the same time, higher tariffs are imposed on dozens of other countries and regions, including China, on the basis of 10%. Among them, the "reciprocal tariff" rate imposed by the United States on China is 34% - the overlapping rate will rise to 54%. The toy industry is facing yet another major challenge. According to reports from the White House website and U.S. media such as The New York Times, this is the largest-scale new tariff policy announced by Trump since taking office in January this year, wielding the tariff stick against the world, including allies, under the guise of "preventing other countries from exploiting the United States." According to the new policy announced by Trump, China's "reciprocal tariff" rate will be 34%, Vietnam's tariff will be as high as 46%, Thailand's tariff will be 36%, Indonesia's tariff will be 32%, India's tariff will be 26%, Japan's tariff will be 24%, South Korea's tariff will be 25%, and the EU countries' tariffs will rise to 20%. According to U.S. media reports, 34% of the reciprocal tariffs on China will be added to the original 20% U.S. tariffs on China, resulting in a total tariff rate of 54% on imports from China. This rate is expected to take effect on April 9. Additionally, the White House announced that starting from May 2, it will terminate the duty-free treatment for small packages (valued at $800 or less) imported from mainland China and Hong Kong, effectively removing the de minimis threshold. Trump's advisers insist that tariffs will bring vital strategic manufacturing capabilities back to the US. However, economists warn that tariffs could slow the global economy, increase the risk of recession, and add thousands of dollars to the cost of living for ordinary American families. If the new tariff policy is implemented, it will be another major challenge for the toy industry. Previously, Hasbro CEO Chris Cocks said in an interview with the media that a 10% tariff could be negotiated and absorbed internally, but a 20% tariff would be unbearable and would definitely be passed on to consumers. It is expected that the toy industry may see a wave of price increases in a few months. Overseas media also believe that the impact of the tariff increase on toy prices will start to become apparent this fall. Recently, a total of 19 toy industry associations from North America, Europe, Asia, and South America signed a joint statement calling for the exclusion of toys from tariff policy formulation and negotiations by the United States and its trading partners. The Vietnamese stock market plummeted threatened with a 46% increase in tariffs. To reduce dependence on Chinese manufacturing, several major toy manufacturers have already adjusted their supply chains in recent years, relocating some production capacity to Southeast Asian countries such as Vietnam and Malaysia. Trump's announcement of the so-called "reciprocal tariff" executive order imposes a tariff rate as high as 46% on Vietnam, significantly higher than that on other countries. After the market opened on Thursday, the Vietnamese stock market fell across the board. Economist and former vice president of the Vietnam Institute for Economic Management, Vo Tri Thanh, stated that tariffs are a shock to the global economy and to Vietnam, and that Vietnam will experience significant negative impacts. The United States has consistently been Vietnam's largest export market. In 2024, Vietnam's exports to the U.S. reached $142 billion, accounting for 30% of Vietnam's GDP. However, for Trump, Vietnam's trade surplus with the U.S. exceeding $123 billion in 2024 represents "a tremendous trade unfairness." Sports brand Nike has about half of its shoe products and 28% of its clothing produced in Vietnam, while its competitor Adidas relies on Vietnamese factories for 39% of its shoes and 18% of its clothing. According to calculations, the average tariff rate for Vietnamese shoe products in the United States was previously 13.6%, and the clothing product rate was 18.8%. According to the latest tax rate announced by Trump, Nike and Adidas's products from Vietnamese factories will need to pay more than three times the tariff when entering the United States. At the same time, some toy manufacturers also rely on Vietnam. Several American companies, such as Hasbro and Mattel, collaborate with the Southeast Asian toy manufacturer GFT to import and sell toys produced by the company. GFT has five production factories in northern Vietnam and employs over 15,000 workers.