As friction between the United States and China intensifies on the trade front, Beijing has unveiled its countermove in response to recent trade barriers imposed by Washington. This development underscores the growing strain between the world’s largest economies, with significant implications for global trade dynamics.
China’s Ministry of Commerce announced on Sunday the initiation of an anti-dumping investigation targeting polyoxymethylene (POM) copolymers, a versatile thermoplastic widely utilized in industries such as automotive, electronics, and manufacturing. The investigation, covering imports from the US, the European Union, Taiwan, and Japan, underscores China’s proactive stance in safeguarding its economic interests.
POM copolymers, known for their flexibility under heat and solidification upon cooling, offer an alternative to traditional metals like copper and zinc. The probe, expected to span a year with the possibility of a six-month extension, symbolizes China’s strategic response to what it perceives as unfair trade practices.
This move comes on the heels of President Joe Biden’s announcement of significant tariff increases on a range of Chinese imports, including electric vehicles (EVs) valued at $18 billion, over the next two years. Notably, tariffs on Chinese EV imports are set to surge from 27.5% to 100%, a move aimed at challenging China’s alleged manipulation of domestic EV prices while imposing steep tariffs on US auto imports.
The Biden administration has framed these measures as essential for protecting American workers and businesses from what it sees as China’s market-distorting practices. This tariff escalation forms part of a broader strategy to address what Washington perceives as China’s unfair trade behavior, reflecting the deepening discord in bilateral relations.
In response, China has vowed to take “all necessary actions” to safeguard its “legitimate rights” in the face of perceived provocations. Concurrently, the European Union is also examining state subsidies provided to Chinese EV manufacturers. If evidence of artificially low prices emerges, the EU has signaled its intent to impose additional import duties by early July. These developments highlight the coordinated efforts of major economies to hold China accountable for its trade practices. As tensions escalate, the global economic landscape braces for further ramifications from this intensifying trade dispute between economic powerhouses.
