Another Type of War Brewing in Asia: Anti-Dumping Duties by China Point to Trade Tussle
By John Rasmussen
Posted: Apr 18, 2013
While the rhetoric and saber rattling have the world's attention focused on the potential for real conflict on the Korean peninsula, another battle in the region has been going on for some time now.
Over the past few months, the U.S. and European Union have sought to provide protection for some of their domestic industries and products from what they consider heavily government subsidized imports from China.
On April 10th, the European Union's trade chief, Karel De Gucht, sought to gain more powers on trade issues in order to make it easier to launch anti-dumping complaints against countries. Though not mentioned by name, most observers felt this is directed at China. According to one official, the majority of complaints- around 80%- are against Chinese companies and products.
This move by De Gucht comes about a week after China's Ministry of Commerce announced that it will impose anti-dumping duties on the chemical toluidine imported from the European Union.
According to the Ministry, European Union toluidine exporters dumped the chemical on the Chinese market and "caused material harm" to China's domestic toluidine industry. In addition, the Ministry's website states that starting April 5th, Chinese importers of toluidine will be required to pay duties ranging from 22.2 percent to 36.9 percent.
The Ministry says that they launched an investigation this past June at the request of Chinese toluidine producers.
This issue of tariffs is just the latest that China has imposed on imported chemicals.
In Mid-March, China levied anti-dumping duties on the chemical 'resorcinol' imported for the United States and Japan.
The Japanese companies Sumitomo Chemical and Mitsui Chemicals, plus others, face duties of 40.5 percent. American companies, including INDSPEC Chemica, a subsidiary of Occidental Petroleum, faces duties of 30.1 percent on resorcinol, which is used to produce rubber adhesives, dyes and cosmetics.
It's obvious by De Gucht and the EU's actions that this wave of anti-dumping duties and tariffs from China hasn't gone unnoticed in Europe and, in fact, will be countered.
While this back and forth with tariffs and duties isn't as dramatic as the current happenings on the Korean peninsula, and growing concerns with the Chinese solar industry and aluminum over production, it doesn't appear that these tensions will subside any time soon.
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