China launches anti-dumping investigation into plastic imports from the EU and US. The result could be punitive tariffs. Washington and Brussels had previously accused the country of unfair trade practices.
China’s Ministry of Commerce has launched an anti-dumping investigation into imports of a key type of plastic from the European Union and the United States. As the ministry in Beijing announced, imports of POM copolymers are under review.
The thermoplastic is used, among other things, in the production of cell phones, cars and medical equipment. In addition to the EU countries and the USA, Japan and Taiwan are also affected by the measure. The investigation into this should be completed in a year, the ministry announced. However, it can also be extended by six months.
In foreign trade, dumping means selling a product below the manufacturing price, which violates trade rules. If the investigations substantiate the dumping allegation, China could potentially impose punitive tariffs.
Reaction to US and EU measures?
The Chinese anti-dumping investigation follows recent actions by the US and EU. US President Joe Biden recently increased tariffs on electric cars, batteries and solar cells from China out of concern about a flood of imports at the expense of domestic manufacturers and justified this with unfair trade practices in the People’s Republic.
In Europe, the EU Commission is examining anti-dumping duties on Chinese electric cars. However, Chancellor Olaf Scholz and the German economy had spoken out against such e-car tariffs. Most recently, the Brussels authority also initiated an anti-dumping investigation into certain steel products from China.