China strikes back: Investigates Western plastics amid trade war
Some plastics can replace certain metals. China has announced that it will investigate the import of these goods from the West. This is a reaction to the U.S. protective tariffs. According to experts, the U.S. decision will backfire on the EU.
6:31 AM EDT, May 20, 2024
China's Ministry of Commerce has launched an anti-dumping investigation against certain chemicals from the EU, USA, Japan, and Taiwan. According to information from the ministry, the chemicals under investigation are "copolymerized paraformaldehyde, which can partially replace copper, zinc, tin, lead, and other metals" - reports "Deutsche Welle".
This substance is used, among other things, in car parts, electrical devices, and industrial machines. Dumping in international trade means selling a product below its production cost, which violates trade regulations.
Experts view the Chinese government's actions as a response to recent trade disputes with the West. Last week, U.S. President Joe Biden imposed additional tariffs of 100 percent on the import of electric cars from China. The decision on whether the EU will impose punitive tariffs has not yet been made.
The White House will maintain tariffs imposed during the previous presidency and introduce new barriers, including a fourfold increase in tariffs on electric cars.
The White House statement mentions the "unacceptable risk" to U.S. economic security created by Beijing's "unfair practices." China has long been accused of flooding the world with cheap goods.
U.S. decisions will cover goods imported from China worth $18 billion, including semiconductors, batteries, electric vehicles, critical minerals, solar panels, cranes, as well as steel and aluminum - the White House said.
"Driving growth at the expense of other countries"
According to data collected by the U.S. Census Bureau, in 2023, the United States imported goods worth $427 billion from China and exported products worth $148 billion. This trade gap, persistent for decades, is becoming an increasingly sensitive topic in Washington - emphasized Reuters.
"China is using a consistent scheme to drive its own growth at the expense of other countries," said Lael Brainard, White House economic advisor, to reporters. Meanwhile, U.S. Trade Representative Katherine Tai stated that the tariff increase is justified, as China continues to steal American intellectual property and, in some cases, has become more aggressive, for instance, by engaging in cyberattacks aimed at copying American technology.
The Ministry of Commerce in Beijing responded to the news of the sharp increase in tariffs by announcing that China will take resolute measures to defend its rights and interests and demanded that the U.S. withdraw from the decision to raise fees.
