Taiwanese firms are among the targets of a new anti-dumping probe as China say its market is being flooded by a certain type of polymer.
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00:00 A sudden announcement from China's Ministry of Commerce has Taiwan on edge.
00:04 The ministry says it's received complaints from chemical firms about foreign dumping
00:08 in the Chinese market, specifically a tough polymer called polyformaldehyde copolymer.
00:14 It's strong enough to replace metal in some machinery.
00:17 And Taiwanese makers of the substance, alongside those from the US, EU and Japan, will be subject
00:22 to a Chinese trade probe.
00:25 The probe will look at whether foreign firms dumped in the Chinese market between 2021
00:29 and 2024.
00:30 It will take at least a year, and it's unclear what sanctions foreign firms could face in
00:35 the end.
00:36 But for Taiwan firms at least, the stakes are high.
00:39 During that period, they sold over two million US dollars of the material to China, amounting
00:44 to 60 percent of their exports.
00:47 While Taiwanese firms aren't the only target, some in Taiwan find their inclusion suspicious.
00:53 China claims Taiwan as part of its territory, and has sanctioned a range of Taiwanese products
00:57 in recent years, including fruit and seafood.
01:01 It's something Taiwan sees as an attempt to pull it closer into Beijing's orbit.
01:06 Some see a repeat of this tactic just as Taiwan inaugurates its next president.
01:10 "At this time, releasing this substance is a bit of a combination of two hands, as it
01:17 was called in the past, to use various means together.
01:21 It creates a kind of pressure."
01:25 Taiwanese makers have 20 days to respond to China's announcement, and Taiwan's economy
01:29 ministry says it will help them to do so, and find alternate markets.
01:33 Still, researchers say Taiwanese firms face a tough road ahead.
01:37 "Finding other markets and other products to share this risk.
01:44 But for the industry, it's not easy to make this kind of transition in the short term.
01:50 If the investigation is not successful, how can we appeal and save the industry?"
01:59 Whatever Beijing's motives and intentions, the probe is a sign that cross-strait trade
02:03 friction will continue, even as Taiwan welcomes a new president.
02:07 Luffy Lee and John Van Triest for Taiwan Plus.
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