China launches anti-dumping probe into EU, US chemical

BEIJING

China's Commerce Ministry on Sunday said it had launched an anti-dumping investigation into imports of an important engineering chemical from the European Union, the United States, Taiwan and Japan.

Beijing said it would probe imports of polyoxymethylene copolymer, a thermoplastic used in everything from phones, car parts, and medical equipment.

The investigation will take a year but could be extended by 6 months, the Commerce Ministry said.

The probe follows a number of similar investigations by the EU into China's subsidies for its industry.

Last month, the bloc launched a probe into China's medical devices market over alleged unfair procurement practices.

Beijing said the probe amounted to "protectionism" and warned it would harm the EU's image.

It also follows sharp hikes in U.S. tariffs on Chinese imports like electric vehicles and semiconductors.

The U.S. is hiking tariffs on $18 billion worth of imports from China, targeting strategic sectors like electric vehicles, batteries, steel and critical minerals, the White House said on May 14.

The tariff rate on EVs will quadruple to 100 percent this year while the one for semiconductors will surge from 25 percent to 50 percent by next year, said the White House.

The action is aimed at encouraging China to "eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation," it added in a statement.