The Chinese government has launched an anti-dumping probe into phenol imports from Korea, the United States, the European Union, Japan, and Thailand in what seems to be part of China`s retaliation against the U.S.’s $60 billion tariffs on Chinese imports. 

The Chinese ministry of commerce on Monday confirmed the country’s latest anti-dumping probe into phenol imports. The probe, which is expected to last a year, will cover phenol imports from the five stated regions over the period from Oct. 1, 2016 to Sep. 30, 2017. 

Phenol is an organic compound widely used in plastics, synthetics, and medicines. 

The probe comes after a group of Chinese chemical producers including China National Petroleum Corp. (CNPC) and Chang Chun Petrochemical filed a petition on Feb 2, requesting an anti-dumping investigation against phenols imported from Korea, the U.S., EU, Japan, and Thailand. They accused that foreign chemical makers from the stated regions sold phenols at unfairly low prices and harmed Chinese businesses. 

The Korean chemical producers under China`s phenol anti-dumping investigation include Kumho P&B Chemicals and LG Chem. As of June 30, 2017, Kumho P&B Chemicals and LG Chem produced 680,000 tons and 580,000 tons of phenols, respectively, per year, according to Korea Petrochemical Industry Association. 

A chemical company official projected it would take at least six months until the Chinese government releases preliminary investigation results and said the firm will keep monitoring the case and take necessary steps. 

Many experts speculate that China’s latest probe into phenol imports is primarily aimed at American producers. President Donald Trump on Friday (local time in the U.S.) announced tariffs of up to $60 billion on Chinese imports and Beijing has struck back by announcing that it plans to impose $3 billion worth of tariffs on U.S.-made goods including pork and steel pipes. 

Some raised concerns that Korea is caught in the crossfire between the world’s two biggest economies and Asia’s fourth largest economy may suffer from the trade war between its two biggest trade partners for a while. 

LG Chem shares closed Tuesday up 0.75 percent at 403,000 won ($376.53) in Seoul trading. Kumho P&B Chemicals is unlisted.