Australia's international trade monitor has found Chinese aluminium windows and doors were "dumped" here, heavily undercutting local prices and damaging the Australian industry.
Starting today, companies importing these goods will also have to put down a financial guarantee when their products enter the country, prompting a warning about higher construction costs and potential retaliation by China.
In a preliminary report, the Australian Trade Remedies Commission, formerly the Anti-Dumping Commission, found all Chinese exporters except one had dumped the goods between July 1, 2024 and June 30 last year.
The commission found the goods were sold with dumping margins ranging from 5.3 per cent to 70.4 per cent of their normal price, depending on the exporter.
Some exporters were also found to have received modest subsidies from various levels of government in China.
The commission found the Chinese imports had "caused material injury" to the Australian industry.
It estimated the local aluminium windows and doors market was worth about $2.8 billion during the investigation period.
Chinese imports accounted for 19 per cent of total sales, Australia accounted for about 79 per cent, and the remaining 2 per cent came from other countries.
The commission estimates Chinese imports cost the industry $350 million. (ABC News: Yiying Li)
According to the report, local manufacturers' sales volumes fell by about 19 per cent from July 2021 to June 2025.
Meanwhile, the value of their sales dropped about 14 per cent from a peak in the 2023 financial year, according to the report.
The commission found that half of the tenders and quotes they examined were about 30 per cent lower than the expected prices, while more than a quarter were undercut by 40 per cent or more.
It estimated the Australian industry had lost about $350 million due to undercutting by "dumped and/or subsidised imports from China".
The commission has proposed recommending Industry and Innovation Minister Tim Ayres publish a dumping duty notice for Chinese goods, which would lead to duties imposed on those imports.
Chinese-made aluminium windows and doors currently face no tariffs under the China-Australia Free Trade Agreement.
A spokesperson for Mr Ayres said the Albanese government supported free and fair trade.
"The Australian Trade Remedies Commission initiates its rigorous, evidence-based investigations based on applications from industry," they said.
"Any trade remedies imposed are fully consistent with Australia's obligations under its trade agreements."
Securities could 'effectively lead to price increase'
While the investigation continues, the commissioner said financial securities were needed to "prevent material injury" to the Australian industry.
From today, importers will have to provide financial securities worth between 5.3 per cent and 73.3 per cent of the value of their products. The percentage will depend on the exporting company.
These securities are financial guarantees against duties that may become payable later. The industry minister will make the final decision on whether any duties are imposed.
Experts say the measures announced by the government could push up prices. (ABC News: Lily Nothling)
UNSW international economic law professor Zhou Weihuan said duties were likely to be imposed, because it was "hard to change" the findings in the commission's preliminary report.
He said securities could "effectively lead to price increases" because importers would account for them in their pricing.
"The price impact would involve an increase in imported aluminium windows and doors, which in turn would push up construction costs for commercial and residential premises," Professor Zhou said.
'Protect competition from unfair trading'
The investigation began on November 25 after an application by Ventora Group and the Australian Glass and Window Association (AGWA).
The application alleged the local industry had "suffered material injury" through lost sales and price suppression.
"We're not asking government to protect Australian businesses from competition," Clinton Skeoch, AGWA's CEO, told the ABC.
"We're asking government to protect competition from unfair trading."
AGWA welcomed the securities and said they were "an important and positive development" for an industry that had faced significant pressure from dumped imports.
The ABC has approached China's Ministry of Commerce and the Chinese embassy for comment.
Professor Zhou said Chinese retaliation was unlikely, because China had historically taken far fewer anti-dumping and countervailing actions against Australia than Australia had against China.
"But it's not impossible, and if China decides to take action, then agricultural exports might be the target," he said.
During the investigation, media reports raised concerns about the quality of Chinese aluminium windows and doors. (ABC Central West: Luke Wong)
Ventora commissioned testing on imported Chinese windows and AGWA made the results public.
The commission said it did not consider the testing results or other allegations about product quality or compliance in its preliminary findings.
Builders raise cost concerns
Melissa Byrne, Acting CEO of Master Builders Australia, said the group would "carefully review the commission's findings".
"At the same time, any measure that increases the cost of construction comes at a time when housing affordability and project feasibility remain under significant pressure,"
she said.
She said Australia "must not restrict the flow of high-quality, compliant building products and materials".
The final recommendations are due no later than December 16. The minister's decision is expected within 30 days of receiving them.
The final report will be published after the minister's decision.