China Hits US, EU Industrial Plastic With Provisional Tariffs as Trade Rows Deepen

Cargo ships loaded with containers are seen berthing in Qingdao Port, east China's Shandong province on Jan. 13, 2025. STR/AFP via Getty Images

China’s commerce ministry on Jan. 16 said that it will impose provisional anti-dumping measures on a widely used industrial plastic imported from the United States, the European Union, Japan, and Taiwan.

Beijing’s decision to target copolymer polyformaldehyde, which is used in medical devices and cars, comes as the communist regime faces growing scrutiny over its non-market trade practices, such as state subsidies and industrial overcapacity, which have been criticized for creating an uneven playing field for foreign companies and workers.

Starting from Jan. 24, Chinese customs officials will collect security deposits from companies that sell the affected product from the mentioned countries, according to the commerce ministry. The deposit rates range from 3.8 percent to 74.9 percent, depending on the company and the country of origin. The highest rate will be imposed on businesses based in the United States.

In a separate statement, a spokesperson for the Chinese Ministry of Commerce cited the results of its preliminary investigation, alleging that copolymer polyformaldehyde from these regions has been unfairly dumped onto the Chinese market.

The investigation into the copolymer was launched on May 19, 2024, just days after the Biden administration significantly increased the tariffs on electric vehicles (EVs), advanced batteries, steel, and other products made in China.

The Democratic president deemed the move necessary to protect American businesses from their cheaper Chinese rivals who receive substantial state subsidies from Beijing. Around the same time, the European Commission also launched a trade investigation into some types of Chinese steel for similar reasons, while Taiwan prepared for the inauguration of its new president, Lai Ching-te.

According to the Chinese ministry, the plastic in question can partially replace metals such as copper and zinc and have various applications including in auto parts, electronics, and medical equipment.

Last year, China imported roughly 3 billion yuan ($409 million) worth from the United States, Japan, Taiwan, and Germany between January and November.

China’s Escalated Trade Tensions With US, EU

The Chinese regime targeted the imported industrial plastics days before the inauguration of President-elect Donald Trump, who has threatened to hike tariffs on products made in China once he returns to office.

Hourly after unveiling the duties hikes, China’s commerce ministry said it would initiate an investigation into semiconductors imported from the United States. The ministry’s official alleged the move was driven by concerns from the domestic chip industry, which said that the Biden administration’s support for the U.S. semiconductor sector granted its companies competitive advantages.

The Chinese ministry official didn’t elaborate on the details of its plan, which was announced a day after Washington’s announcement of new restrictions on Chinese companies and their access to advanced chips. These measures were part of the Biden administration’s efforts to limit the Chinese Communist Party’s (CCP’s) ability to utilize artificial intelligence and other cutting-edge technologies for military advancement and espionage.

In parallel, Brussels has intensified its efforts to counter the CCP’s unfair trade policies and practices. On Jan. 16, the European Commission slapped a definitive anti-dumping duty of up to 233.3 percent on the sweetener erythritol imported from China. The EU’s executive Commission said its investigation found that the CCP’s dumping practices seriously injured the EU’s €30 million ($31 million) industry, leading to double-digit losses and forcing producers to suspend erythritol production at the end of 2022.

The Commission’s announcement followed its decisions to impose anti-dumping tariffs on Chinese mobile access equipment for the next five years, along with proposals for provisional duties on several other Chinese products, such as an amino acid called lysine.

The EU is currently weighing in on new restrictions on Chinese medical device makers after its investigations found Beijing unfairly blocks European companies in its procurement market.

Reuters contributed to this report.