Taiwan expert: "Kill the chicken as a warning to the monkey"!, The Ministry of Commerce's move in Taiwan | News Network | Kill the Rooster as a warning to the Monkey
According to World News Network on August 14th, according to Reuters, the Chinese Ministry of Commerce announced on the 14th that it will impose anti-dumping duties on polycarbonate imported from Taiwan.
The statement on the official website of the Chinese Ministry of Commerce stated that from August 15th, importers are required to provide a deposit to customs when importing polycarbonate from Taiwan.
According to reports, the margin ratio of Taiwan Chemical Fiber Co., Ltd. and Taiwan Chuguang Petrochemical Co., Ltd. is 16.9%; The margin ratio of Qimei Industrial Co., Ltd. and Qiling Technology Co., Ltd. is 17.0%; The margin ratio of other companies in Taiwan is 22.4%.
The announcement states that it is preliminarily determined that the investigated product has been dumped, causing substantial damage to the mainland polycarbonate industry, and there is a causal relationship between dumping and substantial damage.
According to the relevant provisions of China's Anti Dumping Regulations, the investigating authority has decided to implement temporary anti-dumping measures in the form of a deposit. Starting from August 15, 2023, when importing investigated products produced by companies in Taiwan, import operators shall provide corresponding security deposits to the Customs of the People's Republic of China based on the security deposit ratio determined by this preliminary determination.
According to reports, polycarbonate is mainly used in fields such as electronic appliances, sheet/film, automotive, optics, packaging, medical devices, and safety protection.
Analysis indicates that polycarbonate is one of the small items on the early receipt list of the Cross Strait Economic Cooperation Framework Agreement, and the mainland has indirectly cancelled the dividend. It is feared that attention should be paid to whether it will affect other areas in the future.
According to reports, Taiwanese economic expert Yan Huixin stated that the World Trade Organization grants its members the right to conduct anti-dumping investigations. According to the procedure, a preliminary determination is made first, and after determining the elements of injury and dumping, a deposit, also known as anti-dumping duties, can be required. After about half a year of investigation, the tax rate can be finally determined.
Yan Huixin believes that according to the investigation schedule, it currently complies with relevant regulations.
She said that in cases where anti-dumping duties are levied, as long as temporary anti-dumping measures are proposed, the cold cicada effect will form. In order to avoid additional tariff costs, the surveyed manufacturers tend to suspend exports, and Chinese midstream and downstream manufacturers will also adopt a wait-and-see attitude, creating a risk atmosphere that will affect commercial transactions.
According to the report, Zhang Hongyuan, Associate Professor of International Trade at Zhili University of Science and Technology, analyzed that polycarbonate is one of the small items on the ECFA early collection list, and the dividend of tariff reduction is no longer available. The umbrella of the early collection list is invalid.
Zhang Hongyuan believes that the Chinese Ministry of Commerce's determination of the dumping of polycarbonate produced in Taiwan is a more economic consideration. Taiwan companies such as Formosa Plastics Group and Qimei are leading manufacturers of polycarbonate, and cracking down on these manufacturers will achieve a deterrent effect.