G/SG/N/6/CHN/2  
 
26 September 2016  
(16-5113) Page: 1/4 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMEN T ON  
SAFEGUARDS ON INITIA TION OF AN INVESTIGATION  
AND THE REASONS FOR IT 
CHINA 
(Sugar)  
The following communication, dated 22 September 2016, is being circulated at the request of the 
Delegation of China.  
 
_______________  
 
 
1. Date investigation was initiated  
 
22 September 2016.  
 
2. Product under investigation  
 
Sugar is the collective name of any sugar of which sucrose (molecular formula C 12H22O11) is the 
main component, consisting of raw sugar and refined su gar. 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 can not be used as additives. Refined sugar refers to any sugar made from sugar cane or 
sugar beets or raw suga r 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 Tar iff of the 
People's Republic of China : 17011200 , 17011300, 17011400 , 17019100 , 17019910 , 17019920 , 
17019990 (among which code 17011300 and 17011400 is classified under code 17011100 in the 
2011 version of the Customs Import and Export Tariff of the People' s Republic of China ). 
 
3. Reasons for initiation of investigation  
 
(i) Sugar Industry Association of Guangxi Zhuang Autonomous Region (hereinafter referred to as 
the Applicant), on behalf of the domestic industry of sugar, submitted the application for saf eguard 
investigation to the Ministry of Commerce of the People’s Republic of China (hereinafter referred to 
as MOFCOM) on 27 July 2016. The Applicant submitted the information on the product under 
application for investigation, information on the like prod uct or directly competitive products in 
China, information on the quantity increase of the product under application for investigation, 
information on the impact of the product under application for investigation on the domestic 
industry and the relevant e vidences.  
 
(ii) Evidence on the basis of which the investigation was initiated . 
 
Information provided by the Applicant indicated a recent dramatic increase in imports of sugar 
under application for investigation (Annex 1).  
 
Information provided by the Ap plicant indicated decline on relevant productive and economic 
indices, such as operating rate, sales volume, market share, revenue and profit before tax, which 
showed domestic industry suffered serious injury (Annex 2).  G/SG/N/6/CHN/2  
 
- 2 - 
 
   
Information provided by the Applica nt included analysis of the reasons on import increase of the 
product under application for investigation, of which unforeseen development was mentioned.  
 
Information provided by the Applicant indicated a causal link exists between import increase of the 
product under application for investigation and serious injury suffered by the domestic industry.  
 
4. Point of contact  
 
Trade Remedy and Investigation Bureau  
Ministry of Commerce  
The People’s Republic of China  
2, Dong Chang An Street, Beijing, China  
Tel: 00 86-10-65198757 ，65198412  
Fax: 0086 -10-85093401  
Websites:  http://trb.mofcom.gov.cn  
http://www.cacs.mofcom.gov.cn  
 
5. The deadlines and procedures for interested parties to present evidence and their 
comments  
 
(i) Comments on initiation of investigation: Interested parties may submit written comments to 
Trade Remedy and Investigation Bureau of MOFCOM within 20 days from the Initiation Notice 
publication day if they wish to  comment on the product under investigation, standing of the 
applicant, or any other related matters.  
 
(ii) Registration for participating in the safeguard investigation: Any interested parties may 
register to participate in the safeguard investigation at Trade Remedy and Investigation Bureau of 
MOFCOM within 20 days from the publication day of this notice.  
 
(iii) Hearing: Interested parties may apply to Trade Remedy and Investigation Bureau of MOFCOM 
for holding a hearing, and may inquire relevant informat ion of hearings on relevant websites.  
 
6. Further information  
 
A copy of the Public Notice on Initiation of Safeguard Investigation will be submitted to the WTO 
Committee on Safeguards for reference.1 
                                                
1 A copy of the Pu blic Notice has been submitted electronically (in Chinese only). To consult this 
document please contact Ms.  Budd (Hilary.Budd@wto.org) or Ms.  Richards (Anne.Richards@wto.org) of the 
Rules Division.  G/SG/N/6/CH N/2 
 
- 3 - 
 
  ANNEX 1  
1.1 Sugar Import Volume Change in Absolute Va lue 
 
Period  Import Volume (10 Kilo -Tons)  
2011 291.94  
2012 374.74  
2013 454.55  
2014 348.58  
2015 484.59  
 
Period  Import Volume (10 Kilo -Tons)  
1st Quarter of 2011  7.93  
1st Quarter of 2012  49.93  
1st Quarter of 2013  52.88  
1st Quarter of 2014  86.36  
1st Quarter of 2015  99.97  
1st Quarter of 2016  60.54  
 
1.2 Sugar Import Volume Change Compared to Total Volume of Production of China  
Period  Import Volume  
(10 Kilo -Tons)  Total Volume of Production of 
China (10 Kilo -Tons)  Percentage  
2011  291.94  1066.66  27.37%  
2012  374.74  1178.8  31.79%  
2013  454.55  1283.93  35.40%  
2014  348.58  1248.26  27.93%  
2015  484.59  1026.16  47.22%  
 
Period  Import Volume 
(10 Kilo -Tons)  Total Volume of Production of 
China (10 Kilo -Tons)  Percentage  
1st Quarter of 2011   7.93  686.2  1.16%  
1st Quarter of 2012   49.93  774.09  6.45%  
1st Quarter of 2013   52.88  859.04  6.16%  
1st Quarter of 2014   86.36  917.76  9.41%  
1st Quarter of 2015   99.97  734.08  13.62%  
1st Quarter of 2016   60.54  607.96  9.96%  
 
1.3 Sugar Import Volume Cha nge Compared to Total Consumption of China  
Period  Import Volume  
(10 Kilo -Tons)  Total Consumption of 
China (10 Kilo -Tons)  Market Share  
2011  291.94   1,374.91  21.23%  
2012  374.74   1,403.92  26.69%  
2013  454.55   1,494.34  30.42%  
2014  348.58   1,504.8 4  23.16%  
2015  484.59   1,510.00  32.09%  
1st Quarter of 2015   99.97   396.65  25.20%  
1st Quarter of 2016   60.54   397.44  15.23%  
 
  
  G/SG/N/6/CHN/2  
 
- 4 - ANNEX 2  
Item  Unit 2011  2012  2013  2014  2015  1st Quarter of 2015  1st Quarter of 2016  
Consumption 
Volume  10 Kilo -Tons  1,374.91   1,403.92  1,494.34   1,504.84   1,510.00   396.65   397.44  
Utilization of 
Capacity  % 69.96%  77.66%  81.33%  81.70%  63.97%  66.66%  55.81%  
Volume of 
Production  10 Kilo -Tons  601.02   662.51   709.35   728.47   580.33   444.25   371.14  
Sales Volume  10 Kilo -Tons  581.82   704.68   702.00   735.08   598.31   183.54   111.43  
Closing 
Inventory  10 Kilo -Tons  108.91   69.40   80.70   77.43   63.88   339.13   314.26  
Market Share in 
China  % 42.32%  50.19%  46.98%  48.85%  39.62%  46.27%  28.04%  
Domestic Sale s 
Value  100 Million RMB   358.16   372.24   327.98   286.71   259.97   73.71   51.60  
Domestic Sales 
Price RMB/Ton   6,155.90   5,282.30   4,672.01   3,900.37   4,345.12   4,015.87   4,630.77  
Profit before Tax  100 Million RMB   55.59   11.25   -12.03   -36.12   -0.11   -4.48   -4.42  
Return on 
Investemnts  % 12.45%  2.28%  -2.43%  -6.57%  -0.02%  -0.80%  -0.78%  
Net Cash Flow  100 Million RMB   62.42   47.65   -0.97   -47.28   -18.73   -71.37   -95.96  
Employment  Person   47,129   47,474   47,409   46,326   44,886   47,717   47,378  
Average Wage  RMB/Year （Quarter ）/Person   32,910   32,704   33,419   35,068   35,909   12,718   12,534  
Productivity  Ton/Year （Quarter ）/Person   127.53   139.55   149.62   157.25   129.29   93.10   78.34  
 
 
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