The Ministry of Commerce Photo: VCG

Measures taken on imported polycarbonate from the island of Taiwan are part of a normal anti-dumping investigation case and Chinese mainland authorities will make a final ruling on the anti-dumping investigation based on fairness, justice and the law, Zhu Fenglian, spokesperson for the Taiwan Affairs Office of the State Council, said on Wednesday.

It is hoped that the enterprises involved will actively cooperate with the investigation and expand their presence in the mainland market in a lawful manner, Zhu said, according to the Xinhua News Agency. 

The Ministry of Commerce (MOFCOM) on Monday issued a preliminary ruling stating that there is evidence of dumping of polycarbonate originating from the Taiwan island. The ministry also decided to impose temporary anti-dumping measures, with a deposit rate ranging from 16.9 percent to 22.4 percent, starting from Tuesday. Insiders and experts said that the anti-dumping investigation, initiated by several Chinese mainland companies voluntarily, is a completely market-driven action. 

The MOFCOM launched the investigation on November 30, 2022, after several Chinese mainland companies officially filed an application with the ministry, seeking an anti-dumping investigation on imported polycarbonate originating from the island.

An industry insider from the mainland who declined to be identified told the Global Times that the mainland companies voluntarily appealed for the investigation into the imports of Taiwan polycarbonate and the move was entirely market-driven. 

The entry of Taiwan polycarbonate into the mainland market has suppressed the prices of polycarbonate from the mainland companies resulting in significant operational pressures, the insider said.

Polycarbonate pellets. Photo: Puyang Shengtong Juyuan New Material Co., Ltd.

During the investigation period, the MOFCOM found that imported polycarbonate from Taiwan had caused significant price suppression for similar products in the mainland industry, leading to an overall decrease in prices.

The insider said that the ruling from the MOFCOM will help safeguard the legitimate rights and interests of the mainland polycarbonate industry and provide a favorable market competition environment for the healthy development of the industry.

Zhou Xue, an analyst with bulk commodity information platform sci99.com told the Global Times that under the Cross-Straits Economic Cooperation Framework Agreement between the Chinese mainland and the island of Taiwan, polycarbonate from Taiwan has enjoyed zero-tariff status when exported to the mainland. 

However, with the implementation of anti-dumping measures, the damage caused by Taiwan's polycarbonate to mainland industries will be weakened, which will help ensure the security of the mainland's polycarbonate industry chain, experts said.

Polycarbonate is widely used in automotive parts manufacturing, consumer electronics, household appliances and LED lighting. 

In recent years, the mainland's polycarbonate market has continued to expand, but the mainland has also imported the product from the island of Taiwan, South Korea and Saudi Arabia, according to market data.

According to the statistics from the mainland's customs, from 2017 to 2022, the mainland's average annual import volume of polycarbonate from the Taiwan island was 320,400 tons.