Dacheng Represents Shunhengxin to Secure Nation's Lowest CVD Rate in the 4th Annual Administrative Review of U.S. Countervailing Duty on Chinese Corrosion Inhibitors

On May 20, 2026, the U.S. Department of Commerce issued the preliminary determination for the 4th annual administrative review of countervailing duties (CVD) on Chinese corrosion inhibitors.

 

A cross-functional team combining legal professionals and accountants, led by Sun Lei (Senior Partner) together with Chen Huihui, Li Keliu, Wang Yiduo, Xiao Lin, Ge Sicong, Xiang Yincen, Hu Jie and Xu Ningyi from Dacheng Law Offices, represented Anhui Shunhengxin New Materials Co., Ltd. — China’s largest exporter of corrosion inhibitors to the United States — in this proceeding. The client was granted a CVD rate of 19.31%, the lowest among all participating Chinese enterprises in this review.

 

Other Chinese exporters in the case were imposed rates of 48.58% and 36.67%, with the highest rate being 2.52 times that of Shunhengxin. This favorable rate greatly mitigates the adverse impact of countervailing measures on the company's U.S. exports and preserves its profit margins in the overseas market.

 

Since the launch of the 1st annual review in 2022, the trade remedy team led by Sun Lei has continuously optimized response strategies based on case characteristics. With in-depth understanding of U.S. trade remedy rules and full analysis of the chemical industry and product features, the team responded to all investigation focuses item by item.

 

In the 4th review, the U.S. Commerce Department examined eight subsidy programs in total. Four programs, including export buyer's credit, policy-based lending, preferential corporate income tax for high-tech enterprises and additional R&D expense deduction, were ruled to have a 0% CVD rate, accounting for half of all scrutinized items. For the preferential raw material supply program covering four categories of materials, the aggregated rate was only 38% of that applied to another mandatory respondent.

 

The core success of the team lies in targeted legal defense against key subsidy items including China's tax incentives and policy loans in U.S. CVD investigations. For the largest rate-contributing item — below-market raw material supply — the team collected sufficient evidence and legal arguments to prove the actual benefit was far lower than the authority's initial estimation. The efforts effectively reduced the client's overall tax burden and protected the legitimate trading rights of the Chinese enterprise under applicable laws.

 

Currently, the U.S. Department of Commerce has initiated the 5th annual administrative review for this case, and Shunhengxin has reappointed Sun Lei's team as legal counsel. The continuous appointment across five reviews fully recognizes the team's professional judgment and litigation capabilities. The team will keep working to help the client maintain stable export conditions and competitive edges in the U.S. corrosion inhibitor market.