Commerce Department to Initiate POM Copolymer Anti-Dumping Investigation on the 19th
China's Ministry of Commerce has launched an anti-dumping investigation into chemical substances imported from the European Union (EU), the United States, Taiwan, and Japan. This move is seen as the beginning of China's trade retaliation against the US tariff hikes and the EU's investigation into electric vehicle subsidies.
On the 19th, the Ministry of Commerce announced the start of an anti-dumping investigation into polyoxymethylene (POM) copolymers imported from the EU, the US, Taiwan, and Japan. POM copolymers are thermoplastic resins that partially replace metals such as copper and zinc, and are widely used in automotive parts, electronic products, industrial machinery, sports and medical equipment, and construction materials.
This investigation follows an anti-dumping petition filed last month (on the 22nd) by local companies including Yunnan Yuntianhua Co., Ltd., State Energy Group Ningxia Coal Co., Ltd., Kaifeng Longyu Chemical Co., Ltd., Yangguang Lunan Chemical Co., Ltd., Tangshan Zhonghao Chemical Co., Ltd., and China Petroleum Inner Mongolia New Materials Co., Ltd. These companies claim that imported POM copolymers have been "clearly dumped" in the mainland market and have caused "significant damage" to the local industry.
In their petition, they emphasized that "a timely and effective anti-dumping investigation and measures will help restore distorted market competition order" and "protect the industry and economic security of mainland China." According to relevant regulations, the Ministry of Commerce reviewed the petitioners' qualifications, the situation of the investigated products, the status of similar products in the mainland market, the impact on the mainland industry, and the countries (regions) under investigation, and decided to initiate the investigation.
According to market research firm Huajing Industrial Research Institute, China imported 45% of its POM demand in 2022. The Hong Kong-based South China Morning Post (SCMP), based on customs data, estimated that the EU, Taiwan, Japan, and the US ranked 3rd to 6th respectively in China's POM imports in the first quarter of this year.
The announcement stated that the dumping investigation period by the Ministry of Commerce covers one year from January 1 to December 31 of last year, and the industry damage investigation period spans three years from January 1, 2021, to December 31, 2023. The investigation is expected to be completed within one year but may be extended by six months if necessary.
Additionally, the Ministry of Commerce emphasized that stakeholders involved in this investigation must submit basic identification information along with export or import volumes to mainland China, quantities and amounts of the products, and quantities and amounts of similar products produced and sold, in both electronic and written formats to the Trade Remedy Investigation Bureau of the Ministry of Commerce within 20 days from the start of the investigation.
This investigation was launched amid escalating trade pressure from Western countries such as the US and the EU against China. On the 14th, the US announced tariff increases on Chinese electric vehicles, computer chips, and medical products, and on the 17th, the EU began a trade investigation into Chinese tin-plated steel. The EU is also conducting an investigation into subsidies for Chinese electric vehicles. SCMP noted that this announcement came the day before the inauguration of William Lai Ching-te, the pro-independence-leaning president-elect of Taiwan.
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