China Imposes Anti-Dumping Tariffs on Polycarbonate Imports from Taiwan

China imposes anti-dumping tariffs on Taiwanese polycarbonate imports, escalating cross-strait tensions and impacting industries reliant on the material.

Aqsa Younas Rana
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China Imposes Anti-Dumping Tariffs on Polycarbonate Imports from Taiwan

China Imposes Anti-Dumping Tariffs on Polycarbonate Imports from Taiwan

China's Ministry of Commerce has announced that polycarbonate imported from Taiwan will be subject to anti-dumping duties ranging from 9% to 22.4% for a period of five years, starting April 20, 2024. The decision follows a protracted investigation that concluded dumping practices were causing substantial harm to China's domestic polycarbonate industry.

The anti-dumping investigation was initiated in November 2022, with preliminary findings released in August 2023 confirming dumping practices and harm to China's industry. The announcement outlines the specific anti-dumping duties for Taiwanese companies, including Taiwan Chemical Fiber Corp (9%), Idemitsu Chemicals Taiwan Corp (9%), Chimei Corp (12.2%), Chi Lin Technology Co, Ltd (12.2%), and other Taiwanese entities (22.4%).

Polycarbonate is a material used in various sectors, including electronics, automotive, optics, packaging, medical devices, and safety equipment. In 2022, exports to China accounted for 78.5% of Taiwan's total polycarbonate exports, valued at US$830 million (NT$26.98 billion).

Why this matters: The imposition of anti-dumping tariffs on Taiwanese polycarbonate imports by China has significant implications for cross-strait trade relations and the industries reliant on this material. The move is seen as part of China's response to broader geopolitical tensions and pressures, potentially impacting businesses and supply chains in both countries.

Taiwan's government has criticized the decision, stating that it "contributes nothing to normalizing cross-strait trade and is unfair toward Taiwanese businesses." The timing of the punitive measures, coming ahead of the May 20 inauguration of Taiwan's President-elect Lai Ching-te, has also raised concerns about China's intentions to target Taiwan during sensitive political periods.

Key Takeaways

  • China imposes 9-22.4% anti-dumping tariffs on Taiwanese polycarbonate imports for 5 years.
  • Tariffs follow a protracted investigation concluding dumping practices harmed China's domestic industry.
  • Polycarbonate is a key material used in electronics, automotive, optics, and other sectors.
  • Taiwan criticizes the decision as unfair and disruptive to cross-strait trade relations.
  • Timing of tariffs ahead of Taiwan's presidential inauguration raises concerns about China's political motives.