China has started an anti-dumping investigation into imports of a common plastic from the US, EU, Taiwan, and Japan.

China responds to USA Tariff
China Responds to USA Tariff

The Ministry of Commerce announced that imports of polyoxymethylene copolymer, used in electronics and cars, are being scrutinized. This move signals that China is retaliating in its trade disputes with the US and Europe.

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This announcement comes as trade tensions between China, the US, and the EU have escalated in recent months. Less than a week ago, the US increased tariffs on Chinese goods, including electric vehicles (EVs), solar panels, and computer chips. These new measures build on the broad tariffs imposed on Chinese goods during the Trump administration.

China’s commerce ministry responded, saying the new tariffs would “severely affect the atmosphere for bilateral cooperation” and criticized the politicization of economic issues. Before the White House announcement, a Chinese foreign ministry spokesperson said China would “take all necessary measures to safeguard its legitimate rights and interests.”

Additionally, on Monday, The Chinese sanctioned three American defense firms over their sales of weapons to Taiwan. State media reported that General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space & Security are now barred from import and export business in the Chinese. According to the Commerce Ministry, senior executives from these companies are banned from entering, working, or living in China.

Meanwhile, Europe has also initiated several investigations into Chinese imports. On Friday, the EU announced it would investigate Chinese tinplate steel. Last month, the EU started probing two Chinese solar panel makers, accusing them of benefiting from government subsidies.

The European Commission (EC), which manages the EU’s trade policies, has set a deadline of July 4 to decide on potential measures against imports of Chinese-made EVs.