In April, China made waves on the world stage when it announced severe anti-dumping duties on imported plastics. This new countermeasure has particular impact on the US, Japan, EU and Taiwan. To combat recent violence, officials announced several new measures on January 24, 2023. Together, these initiatives shield domestic industries from the Chinese government’s so-called “dumping” in the U.S. market.
The new tariffs hit Japanese imports especially hard, which are now subject to a 35.5% tariff. Asahi Kasei Corp’s emissions intensity, measured by a rate of 24.5%, is very specific, even as far Japanese companies go. This is a big relief from the standard tariff. This policy shift is part of China’s broader campaign to protect its domestic products from foreign competition in all markets, including plastics.
Imports from the United States are subject to the highest anti-dumping rates that China has ever imposed. Paired with this chilling true rate of 74.9%. This rate emphasizes the continued tensions between the two countries on trade practices. Furthermore, shipments to Europe will face a duty of 34.5%, while imports to Taiwan face a general tariff of 32.6%. Specific Taiwanese companies, including Formosa Plastics and Polyplastics Taiwan, were given rates of 4% and 3.8%, respectively.
China and the U.S. have only recently begun a temporary cease fire. The two leaders reached an initial accord to slash mutually-imposed tariffs within the next 90 days. This deal is meant to reduce trade tensions and improve economic ties. Chinese media, particularly the hawkish tabloid The Global Times, has fanned the flames of debate on the merits of extending this truce. Both countries would benefit by upholding the peace treaty.
The actual introduction of these rather early anti-dumping measures is a clear departure from China’s typical international trade strategy. This step reflects China’s continued commitment to defend its homegrown industries. On January 24th, China will introduce deposit duties. This step further signals China’s intention to crack down on what it considers as foreign companies’ predatory pricing practices.