China retaliates with anti-dumping probe in response to recent US tariffs
Following the imposition of significant trade barriers by the United States, China hints at retaliatory measures by launching an anti-dumping probe. Tensions between the two economic giants escalate as they engage in a potential tit-for-tat trade dispute.
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China is considering taking retaliatory measures against trade barriers imposed by the United States, escalating tensions between the two economic giants.
China’s Ministry of Commerce announced on Sunday that they are starting an investigation into polyoxymethylene (POM) copolymers, a type of thermoplastic. POM copolymers are commonly used in industries like auto parts and electronics, and are imported from the US, the European Union, Taiwan, and Japan.
Thermoplastics are materials that can be easily shaped when heated, but will stay in a solid form once they cool down. They are often used as substitutes for metals like copper and zinc.
The ministry stated that the investigation is expected to last a year, with a possible extension of another six months.
This announcement follows President Joe Biden's recent statement about increasing tariffs on $18 billion worth of Chinese electric vehicles (EVs) and various other products within the next two years.
EVs imported from China will now face a much higher tariff of 100%, up from 27.5%. This is a move to counteract China's strategy of promoting low prices for their domestic EVs, while imposing a 40% tariff on cars imported from the US.
The White House has stated that these measures are aimed at safeguarding American workers and businesses from unfair trade practices by China. This includes the practice of flooding international markets with exports that are artificially underpriced.
China has promised to do everything necessary to defend its rightful rights in response.
The EU is looking into the support provided by states to Chinese electric vehicle manufacturers. If it discovers that their prices are unnaturally low, it will impose additional import taxes by the beginning of July.
Editor's P/S:
The escalating
