China has launched an anti-dumping investigation into plastic imports from the EU and the US. This may result in penalty charges. Washington and Brussels have previously accused the country of unfair trade practices.

China's Ministry of Commerce has launched an investigation against imports of a key type of plastic from the European Union and the United States. As announced by the ministry in Beijing, the import of POM copolymers is under review.

Thermoplastics are used in the manufacture of cell phones, cars and medical equipment. Apart from EU countries and the US, Japan and Taiwan are also affected by the move. The ministry has announced that the investigation should be completed within one year. However, this can be extended by six months.

In foreign trade, dumping is selling a product below production cost in violation of trade rules. If investigations confirm allegations of dumping, China may impose punitive duties.

A reaction to US and EU actions?

The Chinese anti-dumping investigation follows recent actions by the US and EU. US President Joe Biden recently increased tariffs on electric cars, batteries and solar cells from China, citing concerns about a flood of imports at the expense of domestic manufacturers and unfair trade practices in the People's Republic.

In Europe, the EU Commission is investigating anti-dumping duties on Chinese electric cars. However, Chancellor Olaf Scholes and the German economy have spoken out against such e-car tariffs. Most recently, the Brussels Commission initiated an anti-dumping investigation into certain steel products from China.