China is retaliating against anti-dumping measures taken by the United States and European Union amid concerns that heavily subsidized Chinese products threaten its industry.
China’s Ministry of Commerce on Sunday announced an anti-dumping investigation into POM (polyoxyethylene) copolymers produced in the United States, EU, Japan and Taiwan, following an application from a Chinese plastics producer.
The news comes as the trade war between the world’s largest and second-largest economies enters its seventh year amid growing unrest across the EU. Chinese manufacturers of products such as EVs have secured an overwhelming market share.
“The Department of Commerce has decided to conduct anti-dumping investigations against imported acetal copolymers from the European Union, the United States, Taiwan, and Japan,” the ministry said in a statement.
AFP (via Getty)
POM copolymers, also known as acetal copolymers, are durable and resistant to abrasion and chemicals, making them ideal for automotive parts, industrial machinery, and electrical components.
Under China’s anti-dumping regulations, such investigations could involve “interested parties” filling out questionnaires, interviews, sampling and on-site inspections, the statement said. The ministry says such investigations are typically completed within a year, but can take up to 18 months.
The move follows President Joe Biden’s decision last week to maintain Trump administration tariffs on $18 billion worth of Chinese imports while increasing tariffs on $18 billion worth of items. .
Biden, who signed legislation allocating more than $70 billion and $10 billion, respectively, to the U.S. EV and solar power industries in 2022, cited the need to protect American workers.
“For years, the Chinese government has been pouring state funds into Chinese companies in every industry, including steel, aluminum, semiconductors, industries of the future like electric vehicles and solar panels,” Biden said at the White House on Tuesday. “We’re not going to let China flood our markets.”
The Chinese government is estimated to spend more than twice as much on industrial subsidies as the United States, giving companies an unfair advantage.
Tariffs on Chinese EVs, which have a negligible market share in the US, have quadrupled from 25% to 100%, and tariffs on solar cells have increased from 25% to 50%. Other affected products include major Chinese exports such as steel, aluminum, semiconductors, lithium-ion batteries and rare earth minerals.
China is currently the dominant force in green technology, with an estimated control of around 80% of the solar panel supply chain alone. According to the U.S. Energy Information Administration, China’s EV exports jumped from 4.2% to 35% of the global total last year.
Responding to sanctions
China’s Ministry of Commerce said the sanctions violate Mr. I swore.
Peter Sattler, a senior lecturer in economics at Duke Kunshan University, said: newsweek From the perspective of American consumers, these tariffs are the wrong approach.
““These tariffs may be driven by fears of an even bigger China Shock in the auto industry during this transition period,” he said, adding, “Rust Belt states Michigan and Wisconsin… He speculated that this was due to “political considerations to keep the government in the blue camp.”
The “China Shock” refers to the rapid influx of Chinese products after China joined the World Trade Organization in 2001.
Sattler said Chinese products are a net positive for the U.S. economy. “Competing with the world’s best companies keeps American companies competitive and innovative, and that competition also benefits American consumers.”
Last week, the EU announced an investigation into China’s tinplate steel products. The 27-member trade bloc has already launched investigations into Chinese electric vehicles, solar panels, medical equipment and wind turbines.
newsweek has contacted the Office of the U.S. Trade Representative and the European Commission via written requests for comment.
Relations between China and Japan have been strained over a number of issues, from territorial disputes in the East China Sea to Japan’s military buildup to counter China’s growing posture in the region.
Relations with autonomous Taiwan, which China considers its own territory, will be further tested with the inauguration on Monday of Taiwan’s President Lai Ching-de of the Beijing-wary Democratic Progressive Party.
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Newsweek is committed to challenging conventional wisdom, seeking common ground and finding connections.
