Video: China retaliates with anti-dumping probe after Biden’s hefty tariffs

China has suggested it may retaliate against recent U.S. trade barriers, escalating tensions between the two economic giants.

On Sunday, China’s Ministry of Commerce announced an anti-dumping investigation into polyoxymethylene (POM) copolymers, a thermoplastic used in industries such as automotive and electronics, imported from the United States, the European Union, Taiwan, and Japan. These thermoplastics are moldable when heated and solidify into a fixed shape upon cooling, serving as partial substitutes for metals like copper and zinc.

The ministry stated that the investigation is expected to last a year, with the possibility of a six-month extension.

This move follows President Joe Biden’s announcement that tariffs on $18 billion worth of Chinese imports, including electric vehicles (EVs), will significantly increase over the next two years. Tariffs on Chinese EVs will nearly quadruple from 27.5% to 100%, a strategy aimed at countering Beijing’s policy of promoting low pricing for domestic EVs while imposing a 40% tariff on U.S. car imports.

The White House justified the measures as necessary to protect American workers and businesses from China’s unfair trade practices, particularly the dumping of artificially low-priced exports into global markets.

In response, China has promised to take “all necessary actions to protect its legitimate rights.”

The European Union is also scrutinizing state subsidies for Chinese EV manufacturers and is expected to announce additional import duties by early July if it finds evidence of artificially low prices.