China retaliates with anti-dumping probe into chemical imports

China Launches Anti-Dumping Probe into Chemical Imports Amid Escalating Trade Disputes

Receiving significant backlash, China has retaliated against recent trade barriers imposed by the US and EU by launching an anti-dumping probe into chemical imports. The probe targets polyoxymethylene copolymer, a thermoplastic used in consumer electronics and automotive industries, from the EU, US, Japan, and Taiwan. This move suggests China's readiness for tit-for-tat action, highlighting limitations in its response due to substantial trade surpluses with the US and EU.

The investigation follows the Biden administration's imposition of tariffs on Chinese goods, including clean energy technologies and computer chips, with a notable quadrupling of tariffs on electric vehicles to 100%. Meanwhile, the EU has begun an anti-subsidy investigation into Chinese electric vehicles due to accusations of state subsidies and market flooding. As the July 4 deadline approaches for the European Commission to decide on provisional tariffs or quotas on Chinese EVs, it remains to be seen how these escalating trade disputes will unfold.

Key Takeaways

• China's anti-dumping probe targets polyoxymethylene copolymer imports from the US, EU, Japan, and Taiwan in response to trade barriers.
• The probe highlights limitations on China's ability to retaliate due to its large trade surpluses with the US and EU.
• The Biden administration recently raised tariffs on Chinese goods, including clean energy technologies and computer chips.
• China has threatened "resolute measures" in response to the US tariffs, following a pattern established during the Trump presidency.
• The EU is investigating Chinese government subsidies for electric vehicles amid concerns of economic injury to European manufacturers.

Analysis

China's anti-dumping probe into chemical imports signifies a protectionist response to US and EU trade barriers, specifically targeting polyoxymethylene copolymer. This action, while limited by China's significant trade surpluses, may escalate trade disputes and impact industries such as consumer electronics, automotive, and clean energy. The Biden administration's increased tariffs on Chinese goods and the EU's investigation of Chinese EV subsidies further strain international economic relations. Consequences may include higher prices for consumers, disrupted supply chains, and reduced market competition. In the long term, these disputes could lead to a reevaluation of global trade policies and partnerships.

Did You Know?

• Anti-dumping probe: China is launching an anti-dumping probe into chemical imports from the US, EU, Japan, and Taiwan, alleging that these countries are dumping polyoxymethylene copolymer, a thermoplastic used in consumer electronics and automotive industries, at unfairly low prices.
• Tariffs on Chinese goods: The Biden administration recently imposed tariffs on a variety of Chinese goods, including clean energy technologies and computer chips. This move is part of the ongoing trade dispute between the US and China.
• Chinese government subsidies for electric vehicles: The European Union has started an anti-subsidy investigation into Chinese electric vehicles due to concerns about state subsidies and market flooding.