China took this step against India
The tense situation between India and China is not only due to the border dispute. Rather, many times, who has the right over the resources, what is the trade practice between the two countries and how is it harming trade. It comes to all these issues. Recently, the Ministry of Commerce of China made a similar announcement, which may affect the trade of both countries.
China’s Ministry of Commerce said on Saturday that it will launch an anti-dumping investigation against India. Besides India, the names of Canada and Japan are also included. What is all this about?
The matter is related to the rubber trade.
China says it will launch an anti-dumping investigation into imports of halogenated butyl rubber from India, Canada and Japan. Halogenated butyl rubber is most commonly used in tires, pharmaceutical closures, sealants and other products. According to Reuters reports, China is afraid of dumping this rubber from Canada, India and Japan into China.
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What is an anti-dumping investigation?
In the era of globalization and free trade agreements, some countries often sell products produced more or cheaper in other countries at lower prices. This amount is so high that it affects the prices of the other country’s domestic industry. By doing this, the domestic industry is harmed and in order to protect it, the government conducts an anti-dumping investigation and then imposes anti-dumping duties.
Are you taking revenge on India?
This action by China is a bit shocking, because many countries around the world often claim that China has dumped its products in their countries. In India, too, the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, conducts anti-dumping investigations. It then sends its report to the Ministry, which in turn sends this report to the Ministry of Finance. The Ministry of Finance makes the final decision on whether or not to impose an anti-dumping duty on a product.
