Mainland China to hit Taiwan’s polycarbonate imports with anti-dumping measures, claims ‘concrete damage’

China will impose temporary anti-dumping measures on imports of a thermoplastic polymer used in electronics, cars, packaging, medical devices and safety protection from Taiwanese producers from Tuesday.

The Ministry of Commerce announced it would levy deposits of 16.9 to 22.4 per cent on polycarbonate products on Monday, a day after current Taiwanese vice-president and leading presidential contender, William Lai Ching-te, stopped in New York en route to Paraguay.

Formosa Chemicals & Fibre, Idemitsu Chemicals Taiwan, Chimei Corporation and Chilin Technology will see deposits of around 17 per cent levied on the value of their products, while rates of 22.4 per cent will be imposed on other Taiwanese businesses.

Taiwan’s Ministry of Economic Affairs said on Monday that it was preparing a response.

Polycarbonates are a versatile material known for their strength, processability and resistance to heat and cold.

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China launched an anti-dumping probe in November after three mainland Chinese manufacturers filed an investigation request on behalf of the industry a month earlier.

Monday’s preliminary ruling claimed that Taiwanese imports have been involved in dumping practices, resulting in “concrete damage” to mainland Chinese industries.

Dumping is usually seen when goods enter a country’s market during the regular trade process at a price below their normal price in China.

The absolute quantity of dumped imported polycarbonate products significantly increased from the start of January 2018 to the end of June last year, the commerce ministry added.

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The quantity jumped by 17.13 per cent, year on year, in the first half of 2022, it added.

Taiwanese businesses have 10 days to provide written feedback and they can also apply for a final review. Deposits paid can be refunded if no dumping practice are found as part of the final investigation.

Mainland China sees self-ruled Taiwan as a breakaway territory that must be united with the mainland, by force if needed.

“Lai Ching-te clings stubbornly to the separatist position for Taiwan independence. He is a troublemaker through and through,” said a spokesman from China’s foreign ministry.

Lai is expected to stop in San Francisco on Wednesday during his return trip after attending the inauguration of Paraguayan President Santiago Pena.

Mainland China has long been the biggest trade partner and export market for Taiwan, however, economic ties have been affected by the cross-strait tensions in recent years.

Mainland China’s merchandise exports to Taiwan fell by 24.5 per cent from a year earlier to US$37.8 billion in the first seven months of 2023, while its imports plunged by 22.8 per cent to US$108.3 billion, China’s customs data showed.

Additional reporting by Ralph Jennings