China penalises US acid imports in retaliatory move as trade relations grow caustic

Name: An unwinnable conflict? The US-China trade war, 5 years on
Uploaded: 2024-04-19T08:20:11.000Z
Duration: 14 min 45 s
Description: An unwinnable conflict? The US-China trade war, 5 years on

China has announced anti-dumping penalties against US imports of an acid, an act widely seen as a response to similar trade moves from Washington

Punitive measures come as atmosphere grows tense between the two countries, with IMF worrying over the global effects of a resurgent trade war

Reading Time:2 minutes

Why you can trust SCMP

Propionic acid, frequently used as a preservative, is the latest commodity to be hit by rising trade tensions between China and the US. Photo: Xinhua

Amanda Lee

Published: 4:20pm, 19 Apr 2024Updated: 5:40pm, 19 Apr 2024

China announced on Friday it would levy anti-dumping penalties of over 40 per cent on imports of a chemical from the United States used in foods, pesticides, pharmaceuticals and drug intermediates – a retaliation against similar action from Washington as tensions build in bilateral trade.

Starting from Saturday, operators will be required to provide corresponding deposits to Chinese customs when importing propionic acid from the US, according to the Ministry of Commerce, confirming the penalties would mean 43.5 per cent of additional cost.

The ministry, having launched an investigation into the chemical – which can also inhibit the growth of mould and some bacteria as a common preservative – in July, said imports from the US had inflicted harm on the domestic industry.

14:45

An unwinnable conflict? The US-China trade war, 5 years on

The announcement followed a proposal by the US to raise tariffs on Chinese steel and aluminium and a probe from the Office of the US Trade Representative (USTR) into China’s maritime, logistics and shipbuilding industries over claims Beijing used “unfair, non-market policies and practices” to “dominate” the sector. Both were announced on Wednesday.

China’s Ministry of Commerce said on Thursday that it was “dissatisfied with” and “firmly opposes” the USTR’s investigation, and that the proposed tariffs on Chinese metal products were “typical unilateralism and protectionist practices”.

Trade tensions remain elevated between the world’s two largest economies, despite recent meetings of senior officials.

Biden needs to demonstrate … he can responsibly manage the relationship with China

Stephen Olson

“While they continue to take tough action against each other, they also need to send signals that the relationship is being stabilised,” said Stephen Olson, a visiting lecturer and non-resident fellow at the University of Nebraska Lincoln’s Yeutter Institute of International Trade and Finance.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x