Amidst the escalating trade tensions between the United States and China, Beijing has unveiled its retaliatory measure following Washington’s imposition of trade barriers. This tit-for-tat exchange underscores the deepening rift between the world’s leading economies, posing significant implications for global trade dynamics.
China’s Ministry of Commerce made a significant announcement on Sunday, revealing the commencement of an anti-dumping investigation targeting polyoxymethylene (POM) copolymers. These versatile thermoplastics find extensive application across various industries, including automotive, electronics, and manufacturing. The investigation encompasses imports from the US, the European Union, Taiwan, and Japan, reflecting China’s proactive stance in defending its economic interests.
POM copolymers, renowned for their pliability under heat and solidification upon cooling, offer a viable alternative to conventional metals like copper and zinc. The probe, anticipated to endure for a year with the potential for a six-month extension, symbolizes China’s strategic response to what it perceives as unfair trade practices employed against it.
This development follows President Joe Biden’s recent announcement of significant tariff hikes on a diverse array of Chinese imports, including electric vehicles (EVs) valued at $18 billion, over the next two years. Notably, tariffs on Chinese EV imports are slated to skyrocket from 27.5% to 100%, a measure aimed at challenging China’s alleged manipulation of domestic EV prices while confronting hefty tariffs on US auto imports.
The Biden administration has justified these actions as essential safeguards for American workers and businesses, alleging China’s distortion of global markets through artificially low-priced exports. This tariff escalation forms part of a broader strategy to address what Washington perceives as China’s unfair trade practices, exacerbating the growing discord in bilateral relations.
In response, China has pledged to undertake “all necessary actions” to protect its “legitimate rights” against perceived provocations. Simultaneously, the European Union is scrutinizing state subsidies provided to Chinese EV manufacturers. Should evidence of artificially depressed prices emerge, the EU has signaled its intention to impose additional import duties by early July. These developments underscore a concerted international effort to hold China accountable for its trade behavior. As tensions continue to mount, the global economic landscape braces for further reverberations from this escalating trade dispute between economic powerhouses.