China starts anti-dumping query on EU, US, Japan, Taiwan chemicals

China has launched an anti-dumping investigation into certain chemicals from the European Union, the United States, Japan and Taiwan, the Ministry of Commerce announced on Sunday.

The chemicals in question are "copolymerized paraformaldehyde," which can "partially replace copper, zinc, tin, lead and other metallic materials" and are used in automotive parts, electrical appliances and industrial machinery.

In foreign trade, dumping means that a product is sold below the manufacturing price, which violates trade rules.

The investigation is to be completed within a year, but could be extended by a further six months "under special circumstances," the ministry said.

The Chinese government's measure is seen by experts as a reaction to the recent trade disputes with the West. Last week, US President Joe Biden imposed special tariffs of 100% on electric car imports from China.

The EU is currently investigating the extent to which China is distorting the market for electric cars. A decision on whether the EU will impose punitive tariffs is pending.