Dumping is a commercial strategy that consists of selling a product at a lower price than normal, and even below its production cost, with the aim of gaining competitive advantages in the market.

China will apply provisional tariffs on imports of industrial plastics from the United States, the European Union, Japan and Taiwan, this after carrying out an anti-dumping investigation that lasted months.

The Asian country announced this Thursday that provisional taxes on polyacetal copolymers will come into effect from January 24 and will range between 3.8% and 74.9%, depending on the country and the company.

Through a statement, the Ministry of Commerce of China highlighted that the decision was derived from a request from the national polyformaldehyde copolymer industry. On May 19, 2024, MOFCOM initiated an anti-dumping investigation on imports from these regions.

The investigation was conducted in accordance with the principles of fairness, transparency and compliance with mainland China and World Trade Organization (WTO) rules, the MOFCOM spokesperson said.

Preliminary evidence indicates that imports from these regions were dumped, causing significant damage to the domestic industry, and establishes a direct link between dumping and the resulting injury, a Commerce Ministry spokesperson said.

What is dumping?

“Dumping” is a commercial strategy that consists of selling a product at a lower than normal price, and even below its production cost, with the aim of gaining competitive advantages in the market.

In this context, the plastics in question have the potential to partially replace metals such as copper and zinc, offering innovative solutions for various industries. Among their applications are automobile parts, electronic devices and medical equipment, as reported by the ministry.