China's Ministry of Commerce dropped a significant bombshell in the economic arena on last week unveiling a plan to slap anti-dumping duties on polycarbonate imports from Taiwan. Effective immediately, these duties are slated to persist for a rather prolonged span of five years.

The ministry's statement provided clarity on the final decision regarding anti-dumping measures aimed at imported polycarbonate originating from Taiwan. The investigation conducted by the ministry unearthed compelling evidence of dumping practices, which were deemed to inflict substantial harm on China's domestic polycarbonate industry.

Taiwan's Customs Administration furnished statistical data that underscored the profound economic significance of the Chinese market for Taiwan's polycarbonate exports. A staggering US$830 million worth of polycarbonate was exported to China alone last year, representing a whopping 78.5 percent of Taiwan's total polycarbonate exports. It's noteworthy that polycarbonate found its place in the "early harvest" list of the Economic Cooperation Framework Agreement (ECFA) inked between Taiwan and China in 2010.

Experts and scholars have speculated that the imposition of anti-dumping duties on polycarbonate, a versatile material indispensable across a myriad of sectors such as electronics, automotive, optics, packaging, medical devices, and safety equipment, might be construed as China's strategic maneuver in response to broader geopolitical tensions and pressures.

The genesis of this investigation traces back to November 2022 when the Chinese Ministry of Commerce kickstarted an anti-dumping probe into imported polycarbonate from Taiwan. Preliminary findings, disclosed in August of the subsequent year, lent credence to the existence of dumping practices and the consequential havoc wreaked upon China's polycarbonate industry. Throughout the interim period, anti-dumping duties on Taiwanese polycarbonate skyrocketed to a daunting 22.4 percent.

However, the conclusion of this investigation, originally scheduled for May 29, was expedited, with the final determination unveiled yesterday, just ahead of the inauguration of president-elect William Lai on May 20. The ministry's announcement delineated the specific anti-dumping duties earmarked for various Taiwanese companies. Prominent entities such as Taiwan Chemical Fiber Corp (9 percent), Idemitsu Chemicals Taiwan Corp (9 percent), Chimei Corp (12.2 percent), Chi Lin Technology Co, Ltd (12.2 percent), alongside other Taiwanese entities (22.4 percent) were laid out.

Reacting to China's decisive move, Taiwan's Executive Yuan spokesperson Lin Tzu-lun raised poignant concerns regarding the fairness and equity of such measures towards Taiwanese businesses. Lin stressed that China's actions do little to foster the normalization of cross-strait trade relations and urged China to refrain from politicizing trade matters. He ardently advocated for the restoration of cross-strait commerce to adhere to international norms.

 

Source:Chemanalyst