Mon, May 20, 2024 page12

• China probes imports of polyoxymethylene copolymer

  RETALIATION: Beijing is investigating Taiwan, the EU, the US and Japan for dumping, following probes of its market, as well as tariff hikes on its imports

  • Staff writer, with agencies
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  The Chinese Ministry of Commerce yesterday said it had launched a dumping investigation into imports of an important engineering chemical from Taiwan, the EU, the US and Japan.

  It would probe imports of polyoxymethylene copolymer, a thermoplastic used in many precision parts used in phones, auto parts and medical equipment, the Chinese commerce ministry said.

  The ministry is reviewing materials provided by six Chinese companies that applied for assistance on behalf of the industry on April 22, it said.

  

  A cargo ship loaded with containers at a port in Qingdao, in eastern China`s Shandong province is photographed on May 14, 2024.

  Photo by: AFP

  The probe will target polyformaldehyde copolymer imported from suppliers in the EU, the US, Taiwan and Japan last year, and will assess any damage those imports caused to the Chinese firms between Jan. 1, 2021 to Dec. 31 last year, the Chinese commerce ministry said.

  The investigation would take a year, but could be extended by six months under special circumstances, it said.

  In Taipei, the Ministry of Economic Affairs (MOEA) yesterday pledged assistance to local polyformaldehyde copolymer producers in navigating an anti-dumping investigation by China.

  The MOEA said it would work with industry stakeholders to submit opinions to the Chinese commerce ministry within a 20-day deadline starting yesterday, as well as assist in subsequent trade remedies.

  Suppliers in Taiwan export approximately 47,000 tonnes of polyformaldehyde copolymer a year to China valued at US$79 million.

  From 2021 to last year, Taiwan accounted for about 12.7 percent to 14.1 percent of China's total polyformaldehyde copolymer import value, making it the fourth-largest source of supply after the EU, South Korea and the US, MOEA data showed.

  On the other hand, about 60 percent of Taiwan's exports of the chemical go to China, with Vietnam, Turkey and India, among Taiwan's other export markets for the product, data showed.

  China's probe follows a number of similar investigations by the EU into Beijing’s subsidies for its industry.

  Last month, the bloc launched a probe into China’s medical devices market over alleged unfair procurement practices.

  Beijing said the probe amounted to “protectionism” and said it would harm the EU’s image.

  It also follows sharp hikes in US tariffs on Chinese imports such as electric vehicles, semiconductors and solar cells.

  Meanwhile, Canada is examining whether it needs to raise tariffs on Chinese-made electric vehicles after the White House announced major new levies on them, Canadian Minister of International Trade, Export Promotion, Small Business and Economic Development Mary Ng (伍鳳儀) said on Saturday.

  “We are looking at this very carefully and we have an open dialogue with our American partners,” Ng said in a telephone interview from Peru, where she is attending APEC meetings.

  The new US tariff on Chinese-manufactured electric vehicles is to take effect this year, with a final tariff rate of 102.5 percent, up from 27.5 percent, while Canada is to impose a small tariff of about 6 percent on Chinese vehicles.

  The Canadian government is speaking with US officials about the policy, Ng said when asked whether Canada might need to align its tariffs with the US.

  “We are absolutely looking at this,” she said.

  Canada’s main focus is on producing electric vehicles domestically, she said, pointing to agreements that Canadian Prime Minister Justin Trudeau’s government has signed with automakers such as Honda Motor Co and Volkswagen AG.

  They are to make electric vehicles, batteries or components in Ontario, Canada’s most populous province.
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