The European Commission recently announced a five-year extension of anti-dumping duties on Chinese-made candles, maintaining the existing tariff rates. This decision has dealt a significant blow to Chinese candle exporters, with industry analysts warning that it could further erode China’s competitiveness in the EU market and accelerate industry consolidation.
Background of Anti-Dumping Policies
Since 2008, the EU has imposed anti-dumping duties on Chinese candles, citing allegations that Chinese manufacturers were selling products “below market value,” harming domestic candle producers in Europe. The latest extension follows a sunset review by the European Commission, which concluded that removing the tariffs could lead to renewed dumping.
Currently, Chinese candles exported to the EU face anti-dumping duties as high as 65%, with rates varying by company. This policy has severely weakened the price advantage of Chinese candles in the EU, prompting some buyers to shift orders to competitors like Vietnam and India.
Impact on China’s Exports
China is the world’s largest producer and exporter of candles, with the EU being a key market. According to Chinese customs data, in 2022, China’s candle exports totaled approximately $1.5 billion, with the EU accounting for around 30%. However, due to anti-dumping measures, export growth to the EU has slowed significantly, forcing some Chinese manufacturers to exit the market.
A candle exporter from Zhejiang said, “The high EU tariffs have made our products nearly 50% more expensive than locally made alternatives, causing many long-term clients to switch to Southeast Asian suppliers.” Additionally, rising raw material costs and fluctuating shipping expenses have further squeezed profit margins.
Industry Adaptation Strategies
To counter trade barriers, Chinese candle manufacturers are adopting several strategies:
- Market Diversification: Expanding into emerging markets like the Middle East and Latin America to reduce reliance on the EU.
- Product Upgrading: Shifting toward premium and eco-friendly candles (e.g., soy wax or beeswax) to avoid price-based competition.
- Overseas Production: Some companies are considering setting up factories in Southeast Asia or Eastern Europe to bypass EU tariffs.
Expert Perspectives
Li Ming, a trade expert at the Chinese Academy of International Trade and Economic Cooperation, noted that the EU’s anti-dumping measures reflect trade protectionism but added that Chinese firms must rethink their reliance on low-price strategies. “Enhancing product value and brand development are crucial for sustainable growth,” he said.
Future Outlook
Although the EU market remains challenging in the short term, global demand for candles—especially in festive and home decor segments—continues to grow. If China’s candle industry accelerates its transformation, it may still secure a strong position in global competition.
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Post time: Aug-11-2025