Following China’s protective move, India has now requested an investigation into the dumping of nylon filament and textured yarns from Taiwan, China, Malaysia, Indonesia, Thailand, and South Korea.

Textile makers on the investigation list include Formosa Chemical & Fiber Corp., Li Peng Enterprise Co., Lealea Enterprise Co., Zig Sheng Industrial Co., Cain Yarn Co., Suntex Fiber Co., Acelon Chemicals & Fiber Corp., and Fu-Ta Textile Co.

Taiwan's textile manufacturers have in recent years expanded the production volume of nylon fabrics. About 60% of Taiwan-made nylon yarns and related products is currently exported to the mainland, and only a small portion goes to India. In 2004 Taiwan's output of nylon yarns amounted to 455,000 tonnes, with 110,000 tonnes sold overseas. In the same year, Taiwan shipped 4,900 tonnes of nylon yarn to India, more than double the figure of 2,200 tonnes recorded a year earlier.

The average price of nylon filament and textured yarns exported by Taiwan's textile makers stood at $2.4-2.5 per kilogramme, higher than the corresponding price of  $1.9 in 2003.