Taiwan Imposes Anti-Dumping Duties on Chinese Beer and Steel

Taiwan has enacted anti-dumping duties on Chinese-made beer and hot-rolled steel for a period of five years. This decision follows an investigation that revealed significant harm to the domestic industry, as confirmed by the Ministry of Finance on July 31, 2023. The investigation was initiated in March, prompted by complaints regarding unfair competition.

The Ministry of Finance stated that both it and the Ministry of Economic Affairs have determined that the implicated companies engaged in dumping practices, which have adversely affected local manufacturers. Among those identified are the Chinese subsidiaries of Budweiser and Kirin beer.

The duties imposed on Chinese beer will range from 19.13 percent to 51.94 percent, while the levies on steel products will be either 16.1 percent or 20.15 percent. These measures are set to commence from July, with the initial four-month duties having been applied earlier this year.

Impact on Trade Relations

According to official data, China was the largest source of beer imports to Taiwan in 2022, with shipments valued at over US$125 million. The Ministry of Finance has indicated that some beer importers were likely aware that foreign exporters were engaging in dumping practices that could harm the domestic market. Consequently, goods imported between April 4 and July 2 will also be subject to these duties.

Currently, Taiwan has 13 active cases of anti-dumping duties on various products, with ten of these cases involving imports from China, its largest trade partner. The imposition of these duties underscores the ongoing tensions between Taiwan and China, which continue to manifest through military, political, and diplomatic pressures on the island nation.

This latest move reflects Taiwan’s commitment to protecting its domestic industries amid challenges posed by external competition. The long-term implications of these duties on trade relations between Taiwan and China remain to be seen, particularly as both sides navigate a complex economic landscape.