China opened an anti-dumping investigation into p-nitrotoluene imported from the European Union, less than a week before EU Trade Commissioner Maroš Sefčovič is due in Beijing for trade talks. On Saturday, China’s commerce ministry said it would examine whether the EU product was sold at low prices and flooding the Chinese market. Domestic producers requested the investigation, a ministry spokesperson said, citing “damage to production and operations.”
The probe should conclude within 12 months, though China can extend it by six months. The chemical goes into dyes, pharmaceuticals and pesticides. The ministry will examine imports from the EU; the article didn’t say what measures China might take after the inquiry.
A trade dispute ahead of talks
The investigation follows an EU probe launched in September into polyvinyl chloride imports from several countries, including China. Beijing denies that state support gives Chinese manufacturers their competitive edge and has threatened countermeasures against EU moves to block Chinese firms.
“China has repeatedly reiterated that the EU needs to face its own economic and trade problems directly and resolve mutual concerns through dialogue and consultation,” the ministry spokesperson said. Both sides are preparing for trade and investment talks.
Dumping happens when a company exports a product for less than it charges at home or below the cost of production. World Trade Organization rules let an importing country impose extra tariffs, known as anti-dumping duties, if an investigation finds that imports have injured domestic producers. China’s investigation will determine whether EU p-nitrotoluene meets that test.
Brussels threatens harsher measures
European Commission President Ursula von der Leyen said in August that the EU had opened 30 trade-defence investigations in a year, nearly triple the usual rate. The article said Chinese imports had risen 45% in five years and described Brussels as running a €1 billion-a-day deficit with China.
The EU has warned of “harsher measures” unless Beijing delivers concrete results. Brussels set a June deadline for the first tangible results from its dialogue with Beijing and is seeking assurances that China will curb exports to the bloc and extend a truce on rare-earth exports. Beijing warned it would respond firmly to new EU restrictions on Chinese companies or products.
Sefčovič’s visit and the next deadline
Sefčovič is scheduled to visit Beijing on October 8–9, co-chair a session of the EU-China Trade and Investment Council and meet Commerce Minister Wang Wentao. In an interview with Euronews the previous month, Sefčovič called the talks highly political and said negotiations had to deliver concrete results.
He warned that without those results, there would be “a strong political movement to push for, I would say, harsher measures.” He also said that if he had nothing to show EU leaders, “the political interest would be to look for the solution through other instruments.” EU leaders are scheduled to meet in Brussels on October 15–16, one week after Sefčovič’s trip. The article focuses on trade investigations, tariffs and restrictions; it gives no information about migration or border policy.