China initiates anti-dumping investigation on plastics from EU, US, Japan, and Taiwan amidst escalating trade tensions.
Experts have noted that the Chinese Communist Party (CCP) is strategically retaliating against the West amidst ongoing trade frictions. The CCP’s Ministry of Commerce announced on May 19 that it is initiating an anti-dumping investigation on polyoxymethylene (POM) copolymer imported from the European Union (EU), the United States, Taiwan, and Japan.
This action is a response to escalating trade tensions between China and Western countries, with concerns that these tensions could escalate into a full-scale trade war. The Ministry of Commerce stated that based on applications from six Chinese companies representing China’s POM copolymer industry, the investigation officially began on May 19 and is expected to conclude by May 19, 2025, with a possible 6-month extension in special circumstances.
The investigation will focus on alleged dumping activities between Jan. 1, 2023, and Dec. 31, 2023, and assess any resulting damage on the industry from Jan. 1, 2021, to Dec. 31, 2023. POM copolymer, classified as an engineering plastic, is versatile and finds applications in various industries.
The initiation of the anti-dumping investigation by the CCP coincided with warnings posted by China’s state TV network CCTV, hinting at countermeasures in response to anti-subsidy investigations launched by the EU. Additionally, recent investigations by the EU targeting Chinese goods raised concerns, leading to retaliatory actions by China.
Industry experts, such as Davy Huang and Lai Rongwei, highlighted the targeted nature of China’s investigation, aimed at impacting the markets of the EU and the United States. Their analysis suggests that this move is a calculated strategy to apply pressure on foreign companies in China while safeguarding domestic interests.
The investigation is viewed not just as an economic decision but also as a manifestation of political-economic competition between China and the West. The CCP’s approach is seen as a negotiation tactic, signaling a willingness to engage in discussions while also asserting its position in international trade dynamics.
The collaborative efforts of Luo Ya and Reuters contributed to this comprehensive report.
