https://ph.pinterest.com/pin/309411436915760651/
Move targets US, EU, Japan, and Taiwan amid growing global trade tensions
In a significant move to protect its domestic manufacturing sector, China has officially announced steep anti-dumping duties on polyoxymethylene (POM) copolymers, a widely used industrial plastic imported from the United States, European Union, Japan, and Taiwan. The new tariffs, which range from 10% to as high as 74.9%, come into effect immediately following a months-long investigation.
The Ministry of Commerce stated that the investigation, which began in late 2024, found compelling evidence that foreign manufacturers were exporting POM products at unfairly low prices, undercutting Chinese producers and causing "substantial damage" to the domestic market.
What Is POM and Why Does It Matter?
Polyoxymethylene (POM), also known as acetal or polyacetal, is a key engineering plastic used in high-performance parts such as gears, bearings, automotive components, and consumer electronics. Its durability and resistance to wear make it essential for both industrial and consumer applications.
By levying high tariffs on POM imports, China aims to shield its domestic producers from market distortions and ensure long-term sustainability for local manufacturers.
Implications for Global Trade
Analysts say the decision may spark fresh tensions between China and its major trading partners, particularly the U.S. and the EU, both of which have already expressed concern over the growing use of trade defense tools by Beijing.
“While the anti-dumping measures align with WTO provisions, they send a clear signal that China is willing to escalate its protective stance in sectors it deems strategically important,” said Dr. Ming Zhao, a trade analyst based in Shanghai.
Meanwhile, some downstream industries in China, particularly in automotive and consumer electronics, may feel short-term pressure due to increased input costs from restricted foreign supply.
Response from Affected Countries
Early reactions from exporters and international trade organizations indicate likely challenges or counter-investigations. Industry groups in Japan and the EU have called for transparency and dialogue, urging Chinese authorities to reconsider the severity of the duties imposed.
Taiwan’s Ministry of Economic Affairs noted it is “closely monitoring the situation” and will provide support to affected Taiwanese exporters.
Strategic Trade Moves Ahead
This move comes at a time when China is doubling down on its efforts to build self-reliance in critical industries, including semiconductors, green energy, and now industrial materials. The government has been actively encouraging innovation and investment in advanced materials manufacturing to reduce dependence on foreign imports.
Whether this development will lead to broader trade friction or encourage accelerated domestic innovation remains to be seen. However, for now, China has made it clear: foreign dumping practices in vital industrial sectors will no longer be tolerated.
References
Reuters. (2025, May 18). China slaps anti-dumping duties on plastics from US, EU, Japan, Taiwan.
The Economic Times
. Retrieved on May 19 2025 from.
https://economictimes.indiatimes.com/news/international/business/china-slaps-anti-dumping-duties-on-plastics-from-us-eu-japan-taiwan/articleshow/121246273.cms