(Yicai) July 22 -- Chinese suppliers of erythritol, including Sanyuan Biotechnology, responded prudently to the new anti-dumping duties the European Union, a major consumer, is levying on such low-calorie sweetener originating from China amid rising exports.

Even major Chinese producers' stocks avoided bigger slumps as shares of Sanyuan [SHE: 301206], a large exporter to the EU, ended the day just 1.3 percent down at CNY24.15 (USD3.30).

Baolingbao Biology [SHE: 002286], which exports less to the EU, closed 1.8 percent lower at CNY6.08 (US 80 cents).

Sanyuan aims to increase the supply of other sugar substitutes, such as high-quality stevia, to make up for the expected loss in erythritol products in Europe, a company insider in the securities department said to Yicai today.

After starting the probe last November, the European Commission revealed its preliminary ruling on July 19, imposing a provisional anti-dumping duty rate of 156.7 percent on Sanyuan’s pure or blended erythritol products, unchanged from an estimate announced last month. The final ruling should arrive early next year at the latest.

The additional tariffs have a certain but limited impact on Sanyuan’s erythritol exports, the Shandong-based company announced quickly after the latest ruling. The company is taking measures, including developing new products and expanding its business layout in emerging markets, to tackle changes in the trade environment.

From Oct. 1, 2022, to Sept. 30, last year, Sanyuan’s exports to the EU accounted for nearly 19 percent of its total revenue, the company disclosed earlier.

Other Chinese firms got reduced rates. Baolingbao’s erythritol exports to the EU will be subject to a lower-than-expected 31.9 percent provisional anti-dumping duty, the lowest on the list of producers, the supplier announced today. Other suppliers will carry rates between 76.9 percent and 235.6 percent, according to the preliminary ruling.

Editors: Tang Shihua, Emmi Laine