China counters US and EU amid deepening trade rows

• The probe targets the import of polyoxymethylene copolymer used in electronics and cars.
• The move comes as China's trade disputes with the US and EU have intensified.
• Europe has initiated probes into Chinese imports, including tinplate steel and solar panel makers.

The Ministry of Commerce has announced that China has launched an anti-dumping probe into imports of widely used plastic from the US, EU, Taiwan, and Japan. The investigation targets the import of polyoxymethylene copolymer, which is used in electronics and cars, signaling China's intention to retaliate in its trade disputes with the US and Europe.

The announcement comes as China's trade rows with the US and the EU have deepened in recent months. Less than a week ago, Washington sharply increased tariffs on Chinese goods, including electric vehicles (EVs), solar panels, and computer chips.

In response, China's commerce ministry stated that the new moves by the US would "severely affect the atmosphere for bilateral cooperation" and criticized what it characterized as the politicization of economic issues. The new US moves also expanded on sweeping border taxes that were imposed on Chinese goods under the Trump administration.

Ahead of the heavily-trail White House announcement, a spokesperson for China's foreign ministry stated that it would "take all necessary measures to safeguard its legitimate rights and interests". State media reported separately on Monday that China sanctioned three American defense firms over their sales of weapons to Taiwan.

The announcement that General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space & Security are barred from "import and export" business in China came as the self-ruled island inaugurated a new president. The commerce ministry stated that senior executives of all three companies are banned from entering, working, or living in China.

Meanwhile, Europe has initiated a series of probes into Chinese imports. On Friday, the EU announced that it would launch an investigation into Chinese tinplate steel. Last month, Brussels announced that it was probing two Chinese solar panel makers that it alleges benefit from government subsidies.

The European Commission (EC), responsible for overseeing the EU's trade policies, has also set a deadline of 4 July for deciding whether to impose measures against imports of Chinese-made EVs.

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