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How can the low price account for the market?

Since the start of this year, there have been increasing reports of anti-dumping cases involving chemical products in international markets. Among these, the anti-dumping actions against saccharin and activated carbon are particularly puzzling. These two products are largely controlled by Chinese companies, yet they end up being dumped due to internal competition and aggressive low-price strategies. From a competitive standpoint, companies often use low prices to gain market share. However, when it comes to products like saccharin and activated carbon—where Chinese firms already dominate the market—can such price wars truly lead to long-term benefits? In my view, this strategy may not be effective. The problem is that resource-intensive and environmentally harmful products like these are still being sold at rock-bottom prices, even when Chinese companies control the market. This has several negative consequences: it devalues China’s natural resources, harms the global reputation of Chinese enterprises, and undermines the profits that should rightfully belong to them. More importantly, it compromises the well-being of workers. While Chinese companies pay a heavy price, the real beneficiaries are foreign consumers and downstream industries. Additionally, WTO rules are clear, and many countries impose trade barriers to protect their own industries. In such an environment, it's extremely difficult for Chinese firms to gain meaningful market share through low-price tactics. Looking at the current landscape, no single company in either the saccharin or activated carbon sector is strong enough to outcompete domestic rivals and take control of the international market. As a result, this kind of low-price competition ends up being more damaging than beneficial. It only serves to make foreign buyers get cheap products and gives competitors a reason to launch anti-dumping investigations against you. Even if some companies manage to dominate the market through massive investments, once they raise prices to capture monopoly profits, they risk facing antitrust scrutiny. In the end, all the costs incurred will be wasted. The international market is moving toward a more regulated and fair competitive environment, where low-price strategies are increasingly seen as illegal and unprofitable. Therefore, Chinese companies must carefully reconsider their approach before engaging in such practices in foreign markets.

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