• TDI
  • Polyether polyols
  • Adipic acid
  • Unspecified dibasic alcohols (including BDO)
1.Impact of China’s additional tariffs on American goods on imports
On September 18, according to the Announcement of the Customs tariff Commission of the State Council on Imposing Additional Tariffs on $60 Billion Worth of American Goods, the Chinese government announced that at 12:01 p.m. on September 24, 2018, it would impose a 10% additional tariff on 2,493 products listed in Appendix 1 and 1,078 products listed in Appendix 2, as well as 5% on 974 items listed in Appendix 3 and 662 items listed in Appendix 4. PMDI and pure MDI are found in Appendix 1.
Impact on pure MDI imports: According to the statistics of PUdaily, throughout the year of 2017, China imported about 70,000 tons of pure MDI, of which more than 1,000 tons were from the United States, accounting for about 1.5% of China’s total imports. Thus, China’s additional tariff on American pure MDI has a limited impact on its pure MDI imports.
Impact on PMDI imports: According to the statistics of PUdaily, throughout the year of 2017, China imported 230,000 tons of PMDI, of which more than 10,000 tons were from the United States, accounting for about 5% of China’s total imports. Thus, China’s additional tariff on American PMDI also has a limited impact on its PMDI imports.
2.Impact of America’s additional tariffs on Chinese goods on exports
On September 17, the president of the United States Donald Trump announced that starting from September 24th the U.S. government would impose a 10% additional tariff on about $200 billion worth of Chinese imports. He further threatened that if the two countries fail to reach an agreement, the additional tariff would be raised to 25% at the start of next year. Polymeric MDI, refrigerators and freezers are found on the list.
Impact on PMDI exports: According to the statistics of PUdaily, in 2017, China exported around 560,000 tons of PMDI, of which more than 160,000 tons went to the United States, accounting for about 29% of China’s total exports. The biggest exporter was Wanhua Chemical, which exported 130,000 tons of polymeric MDI to America. It was followed by Covestro, which exported more than 6,000 tons. Exports from other manufacturers were limited. Thus, it can be seen that Wanhua will be hit most heavily by America’s additional tariffs. But the impact on China’s PMDI exports will be limited if Wanhua exports PMDI to the United States through BorsodChem, and then exports goods produced in China to Europe to fill the market gap left by BorsodChem.
China imposed a 10% additional tariff on American TDI
Data from PUdaily shows that in 2017 China had 11 TDI import sources, with import volume totalling 42,800 tons. The main sources are South Korea and Japan, from which China imported about 28,600 tons and 8,200 tons of TDI, respectively. The two countries combined accounted for 86% of China’s total imports. By contrast, China imported 33 tons of TDI from the United States, accounting for only 0.08% of China’s total imports. Obviously, the share is negligible. As a result, China’s additional tariff on America-derived TDI has limited impact on China’s TDI imports.
CountrySouth KoreaJapan
Import volume (in tons)28,6118,220
America imposed an additional tariff on Chinese TDI
(an additional tariff of 10% would be imposed on September 24, 2018, and the tariff will be potentially raised to 25 on January 1, 2019)
In 2017, China exported 124,100 tons of TDI to 77 countries. The United States was the biggest export destination, to which about 13,000 tons of TDI were exported, accounting for 10.6% of China’s total exports.
[As for the specific exporters, according to PUdaily, in 2017 Covestro was the only supplier to America. It exported 13,000 tons of TDI to the United States, accounting for 13.2% of its total TDI exports. It can be seen that America holds an important position among China’s export destinations. Therefore, the additional tariff imposed by the United States will impact China’s TDI exports to some extent.]
CountryU.S.GermanyTaiwan (China)India
Export volume (in tons)13,12810,5549,5099,169
Overall, as the United States accounts for a negligible share of China’s TDI imports, China’s 10% additional tariff will have little impact on China’s TDI imports in the short term. Whereas America makes up significant share of China’s total TDI exports. Therefore, the additional tariff imposed by the United States will have certain impact on China’s TDI exports.
On June 15, 2018, the U.S. government issued a list of Chinese goods subject to additional tariffs, aiming to impose an additional tariff of 25% on about $50 billion worth of goods imported from China. Of which about $34 billion worth would be subject to additional tariffs from July 6, 2018. Meanwhile, it began to solicit opinion from the public on the additional duties on the remaining $16 billion worth of goods.
Relevant government departments in China responded quickly to that. In accordance with the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on Imports and Exports and other laws and regulations as well as basic principles of international law, the Customs tariff Commission of the State Council announced that China would impose an additional tariff of 25% on 659 items imported from the United States, which are worth about $50 billion. Among them, 545 items are agricultural products, automobiles, aquatic products and so on, which are worth $34 billion and on which additional tariffs would be imposed from July 6, 2018. The date for imposition additional tariffs on the remaining goods will be announced at some other time.
"polyethers, other than polyacetal, in primary forms (HS CODE 39072090)" are found on the two countries’ lists of tariffs. A multitude of polyether polyols such as PTMEG and POM are under the HS CODE. So PUdaily screened the imports and exports data and the results are listed as follows.
According to PUdaily, China had 33 import sources of polyether polyols in 2017, with import volume totalling 468,300 tons. The main sources of imports are Singapore and Thailand, from which imports standing at about 110,000 tons and 100,000 tons, respectively. In 2017, China imported 402.94 million tons of polyether polyols from the United States, accounting for 8.6% of China’s total import volume.
CountrySingaporeThailandU.S.South Korea
Import volume(ton)114,492101,84040,29435,899
However, the "polyethers, other than polyacetal, in primary forms" were removed from the list when the additional tariff was implemented. So the tariff on polyethers remains unchanged.
In 2017, China exported 427,400 tons of polyether polyols to 127 countries. Exports to South Korea are the largest, totalling 48,774 tons. In contrast, exports to the U.S. totaled 13,844 tons, only accounting for 3.2 percent of China's total polyether polyols exports.
CountrySouth KoreaTurkeyVietnamU.S.
Export volume(ton)48,77432,63227,24213,844
In terms of major exporters in China, according to PUdaily, Hongbaoli exported the largest volume of polyether polyols to the United States in 2017, which reached 47.83 million tons and accounted for 16.6% of its total exports. It was followed by Wanhua Chemical, which exported 3,623 tons of polyether polyols to the United States, accounting for 4.6% of its total exports. Then it was Jiahua Chemical, which exported 3,558 tons, accounting for 9.6% of its total export volume. Other major exporters such as Jurong Ningwu New Material and Changshu Yitong Polyurethane Product also saw their exports to the United States make up a relatively small share of their total exports.
Overall, China and the United States import and export polyether polyols to each other and the volume is limited. Even if tariffs are raised, China’s polyether imports and exports will be barely impacted in the short term.
Impact of China and America’s additional tariffs on each other’s market
The additional tariffs will mainly have an impact on the downstream nylon 66 (PA66). The production technology and production of nylon 66 are controlled by a few manufacturers. According to PUdaily, the world's top 5 PA66 manufacturers hold the lion’s share of the global market. The production technology and production are controlled by manufacturers in the United States and European countries such as Britain. Globally, the leading manufacturers include Invista, Solvay and Asahi Kasei. Invista’s capacity for PA66 accounts for about 40-50% of the global capacity. This is mainly because the manufacturer owns the cutting-edge technology for the production of adipodinitrile, a major raw material for PA66. China relies on imports to obtain PA66 as only a few manufacturers in China have PA66 capacity. The biggest one is Henan Shenmaca, which has a capacity of 140,000 tons per year. Domestic total capacity only stands at 250,000 tons/year.
Whereas domestic PA66 demand has been growing steadily in recent years. In 2017, the supply of PA66 in overseas markets was tight due to force majeure on the hexamethylene and adipodinitrile facilities. In current domestic market, the supply of adipodinitrile is inadequate. And the supply of PA66 slices continues to be tight, resulting in high PA66 price. At this point, China’s plan to impose tariffs on American PA66 will probably lead to reduced imports, which will further push up the price of domestic PA66. There are two reasons for that. First, like adipodinitrile, most of which have to be imported, a large volume of nylon 66 needs to be imported. Second, as a major raw material, adipodinitrile is difficult to be replaced. In contrast, America’s additional tariffs on Chinese PA66 will have little impact on its market.
China imposed a 25% additional tariff on American PTMEG
Imports and exports in 2016 and 2017
Year Total imports (in tons) Imports from America (in tons) Share
2016 51,726 0 0
2017 61,417 627 1%
According to PUdaily, China is still a net importer of PTMEG. And regions and countries like Taiwan, Japan and South Korea are the main import sources and export destinations. PTMEG from Taiwan accounts for 80% of China’s total imports, compared with 1% for America. Considering the limited capacity in America and the growing PTMEG capacity in China over the past three years, China’s imposition of additional tariffs will have little impact on its PTMEG imports.
Unspecified dibasic alcohols (including BDO)
China levied a 10% additional tariff on unspecified dibasic alcohols (including BDO)
Year Total imports (in tons) Imports from America (in tons) Share
2016 195,954 29,133 14.87%
2017 202,775 32,767 16.16%
According to PUdaily, in the past three years the top 3 import sources of dibasic alcohol for China have been Taiwan, South Korea and the United States, accounting for 40%, 23% and 16% of China’s total imports, respectively. When BDO is analyzed separately, it can be seen that China's BDO capacity has reached 2.34 million tons, accounting for more than 75% of the global production capacity. This means China has become the hub for the production of BDO in the world. Besides, according to PUdaily, the top three BDO import sources for China are Taiwan, South Korea and Japan. BDO from America accounts for only 1% of China’s total imports. If China imposes additional tariff on BDO from America, its place can be replaced by Taiwan, Japan and South Korea. Thus, China’s additional tariff on American BDO has a limited impact on BDO market in China.
  • Refrigerator
  • Automobile
  • Mattress
  • Apparel
  • Furniture
On July 10, 2018, the Office of United States Trade Representatives announced a new list of tariffs, saying that it would impose an additional tariff of 10% on $200 billion worth of Chinese goods. Refrigerator, one of the downstream applications of PMDI,is found on the list. On August 1, the situation worsened, with the tariff being raised from 10% to 25%. Later, Donald Trump even threatened to impose tariffs on all the Chinese goods. Currently, uncertainty still exists regarding whether the additional tariff will eventually be imposed as the two sides are still in negotiation.
Table 1. volumes of China’s refrigerator sales and exports in 2017
Total sales volume (in 10k units)Total exports volume (in 10k units)Volume of exports to America (in 10k units)Exports to America’s share of total exportsExports to America’s share of total sales
Data from ChinaIOL shows that China's production capacity for refrigerator accounts for 52% of the world’s capacity. In 2017, the volume of China’s refrigerator sales totalled 87.27 million units, of which 35.73 million units were exported, accounting for 41% of the total sales. In the year, China exported 6.79 million units to the United States, accounting for 19% of the total exports and 7.7% of the total sales.
Then here comes the question:how will China’s PMDI market be impacted if the U.S. government finally decides to impose the additional tariff on Chinese imports? It must first be noted that the consumption of foam materials by a refrigerator varies with its capacity. A rough estimate shows that 3 to 4 kg of PMDI is needed to manufacture a refrigerator. Thus, in 2017 refrigerators exported to the United States consumed 20,000-27,000 tons of PMDI. According to the statistics of PUdaily, in 2017 the sales volume of PMDI amounted to about 1.11 million tons. Therefore, the PMDI consumption by refrigerators exported to America made up merely 1.8% to 2.4% of the total PMDI sales. Consequently, in the long term, the trade war will not affect China's PMDI market. But in the short run, it may have a negative impact on the mentality of market participants and thus cause market fluctuation.
Freezer: According to statistics, in 2017 the volume of China’s freezer sales stood at around 17 million units. Of which 1.624 million units were exported to the United States, accounting for 9.5% of the total sales. Therefore, the trade war has a limited impact on domestic freezer market.
China imposed additional tariffs on automobiles imported from America
Cars-related goods are found on the latest list of tariffs, including rubber tires, manual/electric sunroofs, drive shaft and other special parts. The previous list of tariffs, which was implemented on July 6, 2018 and contained $34 billion worth of imported goods, included hybrid electric off-road vehicles and passenger vehicles with certain engine displacements as well as auto parts. The list of tariffs taking effect on August 23 and containing $16 billion worth of imported goods also included cars, SUVs and other vehicles with certain engine displacements, which even accounted for more than half of the goods on the list. A 25% additional tariff has been imposed on the goods on both lists.
America imposed additional tariffs on automobiles imported from China
On previous lists of tariffs which included 34 billion and 16 billion worth of imports respectively, up to 40 car-related items can be found, including finished automobiles such as traditional fuel-engined vehicles and new energy vehicles as well as various metal parts, seat parts and bearing.
For new energy vehicles, the United States has become China's biggest destination for export. According to statistics, in 2017 China exported 214 fully electric passenger cars to the United States, generating sales of $1.65 million, and 1,042 plug-in hybrid electric vehicles to the country, achieving sales of $61.15 million. This made America the country importing the highest volume and value of new-energy vehicles from China.
Will the trade war embroil China's PU market?
According to estimates by the Michigan-based Center for Automotive Research, in 2017 U.S. consumers bought about 50,000 Chinese cars. In 2017, China exported a total of 1.06 million cars, according to China Passenger Car Association. That means America accounted for less than 5% of the total car exports. Thus, most of the industry participants hold that the trade war will have a limited impact on the auto industry. Even BYD, which has captured more than 80% of the market for fully electric bus in the United States, is expected to experience allievated pressure as it has built a factory there. Other exports to the United States are mostly rubber and metal parts such as tyres and bearings.
For PU industry, polyurethane for automobiles is mainly used in automobile interiors (including seat, backrest, headrest, steering wheel, sunroof, etc.), function parts (including bumper, steering wheel, body panels, engine hood and trunk lid, etc.) and CASE (including coating, adhesive, selant and elastomer).
According to estimates by Morgan Stanley and Industrial Securities, on the assumption that the U.S. government imposes an additional tariff of 15%, 30% and 15% on all Chinese goods, China’s exports to the United States will decline by 21%, 46-46.5% and 72%, respectively. Accordingly, China's total exports will fall by 4%, 8% and 13%, respectively. Based on the fact that China exports an annual average of 50,000 vehicles to America and supposing a 38.75% drop in the auto exports, China’s automobile exports to America would decline by about 20,000 units. The volume is not large and as a result demand for polyurethane for automobiles would only decline by 400-500 tons. The limited impact can be absorbed by domestic market.
According to statistics, in 2017 China imported 280,000 cars from the United States, making up about a quarter of its total car imports. This year, all of the imported cars from America will face higher tariffs (15%+25%= 40%). In the context that cars imported from other countries continue to enjoy the preferential tariff of 15%, Chinese consumers will switch to these import sources. As a result, a shuffle is expected in the presence of different imported cars. It remains unknown who is the winner in the trade war.
The U.S. government formally imposed an additional tariff of 10% on $200 billion worth of Chinese goods on September 24, and planned to raise the tariff to 25% at the end of this year.
What is worse, according to the website of United States International Trade Commission, on September 18 some American companies submitted an application to the United States Department of Commerce and the United States International Trade Commission for an anti-dumping investigation into Chinese mattresses. These companies include Corsicana Mattress Company, Elite Comfort Solutions, the Future terms Inc., looking, Inc., Innocor, Inc., KolcraftEnterprises Inc., Leggett & Platt, Incorporated, SertaSimmons Bedding, LLC and Tempur Sealy International, Inc. At present, the United States International Trade Commission has initiated the industry- injury investigation. The United States Department of Commerce will decide whether to put on record within 20 days.
The American market, which makes up 40% of China’s mattress exports, will present a big challenge to China.
In 2017, China sold 66.25 million mattresses, 6.5% of which were exported to the United States. Data from the U.S. government showed that in 2017, the value of imported mattresses as a share of the total market value rose to 15% from 9% in 2016. China exported 4.335 million mattresses to the United States, which were worth more than $400 million, increasing by 159% and accounting for 80% of America’s total mattress imports. It was followed by Mexico, which exported more than 1 million mattresses. By contrast, Canada and Britain combined exported only 10,000 mattresses to America, but with higher average price.
China’s mattresses broke into the U.S. market by leveraging low price. For example, the retail price of Chinese mattresses in the U.S. market is only one third of that of the indigenous mattresses. Therefore, after the additional tariff is imposed, the Chinese companies may continue to export mattresses to America by squeezing profits. But it remains unknown how big the impact of the anti-dumping investigation on China's mattress exports will be.
Then there comes the question: how will the upstream TDI market be affected through the mattress sector? Supposing that all the mattresses exported to the United States are polyurethane foam mattresses, we will examine the impact of the trade war and the anti-dumping investigation on TDI market through the mattress sector. According to the processing trade unit consumption standard, as the density of flexible polyurethane foam varies, the TDI consumption by 1 kg of flexible polyurethane foam ranges between 0.3 and 0.4 kg. The 4.335 million mattresses exported to the United States in 2017 consumed about 34,000-42,000 tons of TDI. According to PUdaily, in 2017 China consumed a total of 727,000 tons of TDI. Thus, TDI used for the production of mattresses exported to America accounted for 4.7 to 5.8% of the total TDI consumption. Spring mattresses still account for a big share of the total mattress exports. And even if the spring mattresses are filled with polyurethane foam, the volume of consumption is relatively small. So, we can reasonably estimate that in 2017, TDI used for the production of mattresses exported to America accounted for less than 4% of the total TDI consumption. If the mattress manufacturers absorb the additional tariff and continue to export to the United States by squeezing their profits, they would certainly expect a decrease in the TDI price. In the short term, this will entail decreased TDI price. But in the long run, as TDI for mattresses exported to America as a share of the total TDI consumption is small, the impact of the trade war on the mattress sector will not spread to the TDI market.
America imposed additional tariffs on Chinese garments
China is the world's largest exporter of textile and apparel products. And the textile and apparel exports constitute an important component of China’s overall exports. They make up around 13% of China’s total exports. America ranks first among China’s top 10 export markets for textile and apparel, and China enjoys a huge trade surplus. Presently, the U.S. tariffs on these products are moderate. for example, the tariff on common clothing products from China generally stands at 10-20%. If the tariff is raised to 45%, exports of these products will be significantly impacted. America has many trading partners. In addition to China, it can also purchase products produced in Vietnam, Mexico, India and other countries. Thus, it is easy for America to switch to alternative import sources. As a valuable bargaining chip in the trade war, the textile and apparel industry will be greatly impacted.
China imposed a 10% additional tariff on American furniture
In 2017, there were 6,000 enterprises earning an annual revenue of 20 million yuan or more from their main business operations in China’s furniture industry. Their prime operating revenue totalled 905.597 billion yuan, up 10.11% from a year earlier; profits 56.515 billion yuan, rising 9.31%; output 807.0347 million pieces, increasing 3.64%. The value of the industry’s exports totalled $ 51.424 billion, an increase of 4.54% from the prior year. In contrast, that of total imports stood at $3.052 billion, up 15.65%, hitting a 10-year high. The value of imports accounted for merely 0.34% of the prime operating revenue. Therefore, China’s additional tariff on American furniture will have limited impact on China’s furniture industry.
America imposed an additional tariff on Chinese TDI
(an additional tariff of 10% would be imposed on September 24, 2018, and the tariff will be potentially raised to 25 on January 1, 2019)
In recent years, furniture from China has played an increasingly dominant role in the international market. In 2017, the value of global furniture output totalled $466 billion. In the year, the value of global furniture exports reached $146 billion, accounting for more than 31% of the total output value. The value of China’s furniture exports totalled $ 51.424 billion, an increase of 4.54% from the prior year. The types of exported furniture included wooden furniture, metal furniture, framework furniture, upholstered furniture, plastic furniture, glass furniture, bamboo and cane furniture as well as furniture parts. Of which the wooden and metal furniture continued to play a major role in China’s furniture exports. The main export destinations were the United States, Japan, the European Union and other developed countries.
If the United States levy additional tariffs on Chinese furniture, China’s exports of upholstered furniture will be affected to some extent, which will in turn have a negative impact on the TDI consumption. According to some upholstered furniture manufacturers, the trade war has had a limited impact on them as only a small share of their products are exported to the United States. However, some said it has some impact on them, because they export quite a lot of goods to the country.

As for the future of the trade war, based on the present situation most people believe that it is a long and arduous process. Experts have described 3 possible scenarios, namely, reaching a compromise, further escalation and complete deterioration.

Most of them think there is a greater possibility of reaching a compromise. This scenario is based on previous experience that both sides showed a genuine willingness to negotiate. In addition, to secure a leading position in the mid-term election at the end of the year, Trump will try his best to consolidate the victory he previously achieved in the trade war and pacify domestic businesses and farmers to whom the war caused damages. On the other hand, the Chinese government demonstrated sincerity regarding the negotiation. After all, the Chinese Confucian culture, which has thousands of years of history, emphasizes reconciliation.

As for the scenario of further escalation, it is also likely and it seems that the war is now moving in this direction. Further escalation will lead to suffocated Sino-U.S. trade and transaction in technology between them.

If the vicious spiral continues, though not great, there is a possibility of complete deterioration. The consequence is the return to the "cold war", with bilateral relationship cut off. Thus, both countries would focus on their domestic markets, and the operations of global companies would be affected.

So, how will the trade war impact China’s policy, economic growth and the development of domestic businesses now and in the future?


The Facts and China's Position on China-US Trade Friction, a white paper issued by the State Council, states that China is unwillinig to, unafraid to and when necessary, has to fight the trade war. With resilient economy and big domestic market, China is backed by industrious, intelligent and united Chinese people. It also enjoys the support of international community represented by countries opposing protectionism, unilateralism and hegemonism. We have the confidence, determination and ability to deal with various challenges and risks. No external forces can stop China from becoming stronger. Without any intention to close its door, China will just make greater efforts to open up. Following the existing plan and strategy, China will unswervingly deepen reform, open China wider to the outside world, advance law-based governance in all areas, and build a socialist country under the rule of law.

Some experts believe that China's "self-centered" strategy is in its interests. Faced with the trade war, China's short-term strategy is tit for tat and relieving the besieged by attacking the base of the besieger, that is, taking corresponding economic countermeasures to force America to negotiate. Its long-term strategy is combining inflexibility with yielding and using moral principle to rein in enemy’s tactics. In other words, China will renew its efforts to pursue further reform and opening up to make itself stronger and more confident, thereby better dealing with the external uncertainties. And it will actively participate in and lead global economic governance, taking the initiative to handle the competition between major countries.

Impact on domestic economy

After the 2008 financial crisis broke out, many exporters could not sell their goods, forcing China to transform its economic structure. Over the past 10 years, the contribution made by consumption to the GDP growth has been increasing steadily. Whereas that made by exports has been decreasing. In 2017, exports only accounted for 10% of the 82 trillion yuan of GDP. Some experts estimated that in the baseline scenario, where the additional tariff imposed by the United States leads to equivalent reduction in China's net exports, China's GDP growth will be reduced by 0.1% in 2018. In the worst scenario, where the trade war escalates and China’s net exports to America decrease by 80%, China's GDP growth will be reduced by 0.3% in 2018.

So, the impact of the trade war on the overall economy is limited. The impact is more on the sentiments, that is, the panic about social and economic turmoil caused by the rivalry between two countries.

Impact on domestic companies

The additional tariff mainly affects businesses in some coastal areas. Problems caused by the trade war such as reduced exports, rising production costs and reluctance to make investment will be alleviated by the businesses themselves through adaptation and by the government’s policy support. MDI, which can be found on the list of tariffs, is a good example illustrating that. According to China's largest polyurethane producer, the impact of the additional tariff is limited at present and the company has been well prepared for it. If the tariff rises to 25% in the future, it can relieve the pressure by switching to alternative channels. However, some experts said the best option for China and the United States is to sit down at the negotiating table and bring the lose-lose situation to an end. After all, the current countermeasures are adopted because no better options can be chosen from.

Moreover, most of the foreign-owned enterprises in China are optimistic about China’s economic growth and are stepping up investment in China. Take the chemical industry as an example. Recently, BASF, Exxon Mobil and SABIC revealed their plans to make large investment in China. The previous report that Asahi Kasei decided to shut down its factories in China due to the trade friction has been officially negated. Instead, Asahi Kasei believes that China's rapid economic growth provides great opportunity for the industry, and it will continue to develop the Chinese market.

To sum up, the trade war waged by the United States might be aimed at reducing the trade deficit so as to protect its national interests, or at containing China as a rising economic power. Whatever the reason is, China will stick to its policy of meeting head-on if America escalates the war and welcoming negotiation if it seeks reconciliation. Besides taking countermeasures, China should develop itself as the central task. As the saying goes, it takes a good blacksmith to make good steel. China will develop core technologies by investing more in basic research, better ensure the protection of intellectual property and continue to pursue reform and opening up. It will unwaveringly stick to this right path. For polyurethane producers, they may not be significantly affected by the trade friction as products hit by the additional tariff are at the upper value chain. But they also should be alert to dangers even in times of calm and constantly develop new core competencies, thus adapting to the changing world.

China-US trade war