In response to concerns about the trade deficit between China and the European Union, Japan, Taiwan, and the United States, China’s commerce ministry has initiated an anti-dumping investigation into POM copolymers. These plastics can be used in place of metals like copper and zinc and have applications in auto parts, electronics, and medical equipment. The investigation is expected to be completed within a year but could be extended for another six months.
The European Commission has expressed its concern over this probe and stated that it will carefully review the details of the investigation before making any decisions on next steps. They expect it to comply with all relevant rules and obligations of the World Trade Organization (WTO). This investigation comes amidst a broader trade dispute with the United States and Europe. In recent times, the US announced significant tariff hikes on Chinese electric vehicles, computer chips, medical products, and other imports. Similarly, the European Union launched an investigation into Chinese tinplate steel.
Last September, the European Commission began a probe to consider imposing punitive tariffs on inexpensive Chinese electric vehicles suspected of benefiting from state subsidies. Beijing argues that the focus by the US and Europe on the risks of China’s excess capacity to other economies is skewed. Chinese officials assert that the criticism undermines the innovations by Chinese companies in critical industries and exaggerates the role of state support in their growth.
