Beijing imposes anti-dumping measure amid trade tensions

China told importers of a U.S. industrial chemical to start posting deposits yesterday in preparation for possible anti-dumping duties amid rising trade tension with Washington.

A preliminary ruling by the Ministry of Commerce said styrene monomer from the United States, South Korea and Taiwan is being sold at prices 5 to 10.7 percent below the proper level. The chemical is widely used to make packaging and consumer products.

Importers must now pay cash deposits while the ministry completes its investigation.

The ministry said in its ruling the Chinese styrene industry has been “substantially damaged” by dumping, which occurs when manufacturers sell a product to another country at unusually low prices.

The decision follows U.S. President Donald Trump’s approval last month of higher tariffs on Chinese-made solar equipment and washing machines that Washington said were sold at unfairly low costs. The Trump administration is also due to announce results of a probe into whether Beijing improperly pressures foreign companies to hand over technology, which could lead to further penalties.

Beijing’s steady accumulation of multibillion-dollar trade surpluses with the U.S. — which widened January to USD21.9 billion — has prompted demands for import controls.

Meanwhile, Chinese authorities have accused Trump of threatening the global trade regulation system by taking action under U.S. law instead of through the World Trade Organization. Beijing has filed a challenge in the WTO against Washington’s latest trade measures.

It also launched an anti-dumping investigation of U.S. sorghum exports earlier this month.

Styrene monomer figures largely in foam and plastic packaging, as well as low-cost consumer products, which are central to China’s booming e-commerce industry.

Donald Trump threatens anew

Trump threatened anew yesterday [Macau time] to impose a “reciprocal tax” on countries that he says abuse their trade relationships with the U.S., promising to release more details this week.

But White House aides said no immediate action was expected.

Trump mentioned the plan during a White House meeting with a group of governors and local leaders who were invited to discuss the USD1.5 trillion infrastructure proposal he sent to Congress.

Trump has floated the idea of a reciprocal tax in the past, promising to slap it on countries, including allies, that take advantage of the United States.

The president also addressed ongoing negotiations over the North American Free Trade Agreement and complained that Canada, which is a party to that trade pact along with Mexico and the U.S., doesn’t treat the U.S. well. He also complained about Mexico’s treatment of the U.S.

“We cannot continue to be taken advantage of by other countries,” Trump said. “We cannot continue to let people come into our country and rob us blind, and charge us tremendous tariffs and taxes, and we charge them nothing. We cannot allow that to happen. We cannot allow it to happen.”

He also complained about the U.S. losing “vast amounts of money” in trade with China, Japan, South Korea and other countries.

“They understand where I’m coming from,” Trump said, adding that he’s talked with all of those country and “they understand it.” MDT/AP