China's low-priced nylon film harms Taiwan's industry, ministry finds

China's polyamide (PA) film has flooded the Taiwanese market, driving down prices and causing significant losses for domestic manufacturers. The Ministry of Economic Affairs announced on June 9 that there is sufficient evidence to suggest that Chinese PA film imports are causing substantial harm to Taiwan's industry. This finding follows a preliminary investigation into the matter.

According to the ministry, Chinese PA film imports have steadily increased since 2022, with prices consistently falling. By 2025, Chinese imports were priced lower than comparable Taiwanese products. This aggressive pricing forced Taiwanese companies to lower their own prices in 2023 and 2024, leading to escalating losses. While some companies attempted to avoid further losses in 2025 by not engaging in price wars, they experienced significant declines in sales volume and market share.

The investigation period, from 2022 to March 2026, revealed a clear trend of declining prices and rising import volumes from China. Although a slight increase in domestic prices occurred in the first quarter of 2026 due to lower raw material costs, leading to a reduction in losses, the industry has not yet returned to profitability. The ministry's assessment considered factors such as price, sales volume, market share, and profitability.

The case will now move to the Ministry of Finance for a preliminary and final investigation into dumping. If both dumping and injury are confirmed, Taiwan may impose anti-dumping duties to ensure fair competition for its domestic industry. This process involves a strict timeline, with the Ministry of Finance expected to make a preliminary determination within 70 days.