G/SG/N/8/CHN/2  
 
27 April 2017  
(17-2321) Page: 1/5 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12. 1(B) OF THE AGREEMENT ON  
SAFEGUARDS  ON FINDING A SERIOUS  INJURY OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
CHINA 
(Sugar ) 
The following communication, dated 26 April 201 7, is being ci rculated at the request of the 
Delegation  of China . 
 
_______________  
 
 
Pursuant to Article 12.1(b) of the Agreement on Safeguards, China  hereby provides notification to 
the Committee on Safeguards of findings of serious injury or threat thereof caused by increased 
imports. The investigation was i nitiated on 22 September 2016, and not ification was provided to 
the Committee on Safeguards on 22 September 2016 (Notification No. G/SG/N/6/CHN/2). China  
will continue to carry on the relevant safeguard procedures and immediate ly notify the Committee 
upon taking a decision to apply a safeguard measure, accord ing to Article 12.1 (c) (taking a 
decision to apply or extend a safeguard measure) and Article 9.1 (the exclusion of developing 
country members)  and its footnote.  
 
1.  Provide evidence, citing relevant data and the applicable period of investigation of 
serious injury or threat thereof caused by increased imports.  
 
During the investigation period (from 2011 through the first quarter of 2016), affected by the 
increase d import s, the major production and ope ration indicators of the domestic industry such as 
sales income, sales price, pre -tax profits and return on investment ha ve suffered an overall 
deterioration, and the domestic industry has suffered a significant and overall impairment. The 
increase d import s have caused serious injury to the domestic industry.  
 
Major Production and Operation Indicators of the Domestic Industry  
 
Item  Unit 2011  2012  2013  2014  2015  2015  
1st quarter  2016  
1st quarter  
Demand  10K MT  1,374.91  1,403.92  1,494.34  1,504.84  1,510.00  396.65 397.44  
Import 
Quantity  10K MT  291.94  374.74  454.55  348.58  484.59  99.97  60.54  
Import Price  USD/MT  665.75  598.75  455.10  428.67  366.10  384.56  357.13  
Import 
market 
Share  % 21.23%  26.69%  30.42%  23.16%  32.09%  25.20%  15.23%  
Pressing 
capacity  10K MT  9,525. 41 9,687.60  9,840.99  10,188.75  10,176.38  7,197.14  7,142.73  
Utilization of 
Capacity  % 68.44%  77.72%  80.35%  78.72%  63.97%  65.59%  56.35%  
Production  10K MT  786.46  894.30  953.09  972.80  801.03  572.81  484.36  
Sales 
Quantity  10K MT  779.40  926.78  948.30  964.88  821.54 236.25  176.40  G/SG/N/8/CHN/ 2 
 
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  Item  Unit 2011  2012  2013  2014  2015  2015  
1st quarter  2016  
1st quarter  
Market 
Share  % 56.69%  66.01%  63.46%  64.12%  54.41%  59.56%  44.38%  
Sales 
Income  100M CNY  472.88  487.08  440.62  372.95  354.91  94.43  80.61  
Sales Price  CNY/MT  6,067.24  5,255.60  4,646.45  3,865.25  4,320.00  3,996.85  4,569.61  
Production 
Cost CNY/MT 4,422.60  4,428.54  4,212.60  3,827.80  3,911.99  3,738.24  4,234.28  
Pre-tax 
Profit  100M CNY  77.09  17.01  -15.72  -51.51  -5.63 -9.32 -6.01 
Return on 
Investments  % 12.26%  2.31%  -2.03%  -6.62%  -0.71%  -0.99%  -0.56%  
Net Cash 
flow 100M CNY  51.61  41.87  -51.03  -65.44 -60.72  -91.66  -116.50  
Closing 
Inventory  10K MT  129.53  99.26  108.63  121.35  106.69  453.74  417.66  
Employment  Person  75,355  75,720  74,271  70,763  65,671  67,078  63,063  
Labor 
productivity  MT/Person  104.37  118.11  128.33  137.47  121.98  85.39  76.81  
 
2.  Provi de information on whether there is an absolute increase in imports or an 
increase in imports relative to domestic production (please see also Article 2.1 for the 
context).  
 
The imports of the product under investigation in absolute term have  shown "recent,  sudden, 
sharp and significant " enough increase during the investigation period, and the percentage of 
imported product under investigation in domestic production  and the market share of the product 
under investigation have shown an overall  growth trend.  
 
Change of Import of Product under Investigation  
 
Quantity Unit ：10k MT  
Period  Import 
Quantity  Percentage 
of Change  Period  Import 
Quantity  Percentage 
of Change  
2011 291.94  65.30%  1st quarter 2011 7.93 - 
2012 374.74  28.36%  1st quarter 2012 49.93  529.38%  
2013 454.55  21.30%  1st quarter 2013 52.88  5.92%  
2014 348.58  -23.31%  1st quarter 2014 86.36  63.31%  
2015 484.59  39.02%  1st quarter 2015 99.97  15.76%  
- - - 1st quarter 2016 60.54  -39.44%  
 
Change of Quarterly Import of Product under Investigation during 201 1 – 2015  
 
    Unit：10k MT  
Period  1st Quarter  2nd 
Quarter  3rd Quarter  4th Quarter  1st Quarter of 
Next Year  
2011 7.93 44.12  114.91  124.98  49.93  
2012 49.93  94.52  156.70  73.57  52.89  
2013 52.89  73.91  165.77  162.02  86.35  
2014 86.35  52.84  101.19  108.2  99.98  
2015 99.98  131.34  141.36  111.64  60.54  
 G/SG/N/8/CHN/2  
 
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  Comparison of Import of Product under Investigation to Total Domestic Production  
 
Quantity Unit ：10k MT  
Period  Import 
Quantity  Percentage 
of Change  Domestic Total 
Production  Percentage 
of Change  Percentage of 
Domestic Production 
Accoun ted for by 
Product under 
Investigation  
2011 291.94  65.30%  1,066.66  - 27.37%  
2012 374.74  28.36%  1,178.80  10.51%  31.79%  
2013 454.55  21.30%  1,283.93  8.92%  35.40%  
2014 348.58  -23.31%  1,248.26  -2.78%  27.93%  
2015 484.59  39.02%  1,026.16  -17.79%  47.22%  
2015 Q1 99.97  - 734.08  - 13.62%  
2016 Q1  60.54  -39.44%  607.96  -17.18%  9.96%  
 
Change in Market Share of Product under Investigation  
 
Quantity Unit ：10k MT  
Period  Domestic 
Demand  Import of 
Product under 
Investigation  Market 
Share  Change in 
Percentage points  
2011 1,374.91  291.94  21.23%  +8.39  
2012 1,403.92  374.74  26.69%  +5.46  
2013 1,494.34  454.55  30.42%  +3.73  
2014 1,504.84  348.58  23.16%  -7.25 
2015 1,510.00  484.59  32.09%  +8.93  
2015 Q1 396.65  99.97  25.20%  - 
2016 Q1 397.44  60.54  15.23%  -9.97 
Note: Market share = Import quantity / Domestic Demand  
 
3.  Provide the precise description of the product involved. Provide the Harmonized 
System numbers under  which the product enters at least at a 6 -digit HS level, and at a 
sub-national level (e.g. 8 -digit HS, 9 -digit HS or 10 -digit HS) if practicable. (The HS 
codes will be provided for reference purposes only.)  
 
Sugar is the collective name of any sugar of wh ich sucrose (molecular formula C12H22O11) is the  
main component, consisting of raw sugar and refined sugar. Raw sugar refers to the kind of raw  
material sugar, made from sugar cane or sugar beets through processing, which is not directly  
edible or cannot b e used as additives. Refined sugar refers to any sugar made from sugar cane or  
sugar beets or raw sugar through processing, which is directly edible or can be used as additives,  
such as white granulated sugar, brown granulated sugar, superfine sugar, brown  sugar, etc.  
 
This product is classified under the following code of the Customs Import and Export Tariff of the  
People's Republic of China: 17011200, 17011300, 17011400, 17019100, 17019910, 17019920,  
17019990 (among which code 17011300 and 17011400 is cla ssified under code 17011100 in the  
2011 version of the Customs Import and Export Tariff of the People's Republic of China).  
 
4.  If the final measure replaces a provisional measure, or if a final measure is 
extended, a Member is encouraged to provide a wri tten description of any part of the 
imported product that will no longer be subject to the measure and the Harmonized 
System numbers under which it enters at least at a 6 -digit level, and at a sub -national 
level (e.g., 8 -digit, 9 -digit or 10 -digit level) i f practicable.  
 
Not applicable.  
 G/SG/N/8/CHN/ 2 
 
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  5.  Provide precise description of the proposed measure.  
 
Not available.  
 
6.  Provide proposed date of introduction of the measure.  
 
Not available.  
 
7.  Provide expected duration of the measure.  
 
Not available.  
 
8.  For a m easure with a duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid -term of the measure, 
if such a date for the review has already been scheduled.  
 
Not available.  
 
9.  If the expec ted duration is over one year, provide expected timetable for 
progressive liberalization of the measure.  
 
Not available.  
 
10.  If the notification relates only to a finding of serious injury or threat thereof, and 
does not relate to a decision to apply or extend a safeguard measure:  
(i) provide the deadlines for interested parties to comment or any other procedures 
relevant to the decision to apply the measures, and  
(ii) provide information regarding procedures for prior consultation with those Members 
having a substantial interest as exporters of the product concerned.  
 
China  investigati ng authority disclosed related  information on this case on 26 April 2017. Any 
comment that interested parties may have shall be submitted to the  investigati ng authority with in 
10 days from the date of disclosure. For members having a substantial interest as exporters of the 
product under investigation , the investigati ng authority also provides opportunity for prior 
consultations on safeguard measures from the date of disclosu re. 
 
China  investigatin g authorit y has sent copies of this notification to the Permanent Mission of Brazil, 
Cuba, Thailand, Australia, South Korea and Guatemala to the WTO.  
 
11.  If the measure is being extended, also provide:  
(i) evidence that the industr y concerned is adjusting and that the safeguard measure 
continues to be necessary to prevent or remedy serious injury;  
(ii) reference to the WTO document that notified the initial application of the measure;  
(iii) duration of the measure from initial appli cation till the date at which it will be 
extended; and,  
(iv) precise description of the measure in place prior to the date of extension (in this 
context, please note that the last sentence of Article 7.4 states that: "A measure 
extended under paragraph 2 shall not be more restrictive than it was at the end of t he 
initial period, and should continue to be liberalized.")  
 
Not applicable.  
 
12.  If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information:  
(i) The major exporting Member s of imports of the product involved.  
(ii) If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Article 9.1, the names of such exporting Members 
and reasons for non -application of the measure.  
 
Not applicable.  
 G/SG/N/8/CHN/2  
 
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  13.  Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority. This 
document may be in the original language of the Member, even when the l anguage is 
not one of the official languages of the WTO. The document will neither be translated 
nor circulated to the Committee, but will be made available by the Secretariat to 
Members requesting it.  
 
Not available.  
 
__________