China launches anti-dumping probe into critical UK chemicals
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 US protective tariffs. According to experts, the US decision will backfire on the UK.
20 May 2024 08:26
China's Ministry of Commerce has launched an anti-dumping investigation against certain chemicals from the UK, USA, Japan, and Taiwan. According to information from the ministry, the chemicals under investigation are "copolymerised 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, US President Joe Biden imposed additional 100 percent tariffs on the import of electric cars from China. The decision on whether the UK 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 US economic security created by Beijing's "unfair practices." China has long been accused of flooding the world with cheap goods.
"US decisions will cover goods imported from China worth £14 billion, including semiconductors, batteries, electric vehicles, critical minerals, solar panels, cranes, as well as steel and aluminium," - the White House said.
"Driving growth at the expense of other countries"
According to data collected by the US Census Bureau, in 2023, the United States imported goods worth £353 billion from China and exported products worth £122 billion. This trade gap, persistent for decades, is becoming an increasingly sensitive topic in Washington - emphasised Reuters.
"China is using a consistent scheme to drive its growth at the expense of other countries," said Lael Brainard, White House economic advisor, to reporters. Meanwhile, US 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 sharp increase in tariffs by announcing that China will take resolute measures to defend its rights and interests and demanded that the USA withdraw from the decision to raise fees.
