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. The inquiry will examine whether low-priced EU imports are flooding the Chinese market. If it finds domestic producers suffered injury, the outcome could bring additional tariffs under World Trade Organization rules.
A trade dispute before the talks
China’s commerce ministry said on Saturday that domestic producers had requested the investigation, citing “damage to production and operations.” The ministry hasn’t announced a finding against EU exporters. It expects the inquiry to conclude within 12 months, though officials can extend it by six months.
P-nitrotoluene goes into dyes, pharmaceuticals and pesticides. The probe focuses on that chemical, while Sefčovič’s visit will address broader EU-China trade and investment issues.
The investigation follows the EU’s September launch of a probe into polyvinyl chloride imports from countries including China. Beijing denies that state support gives Chinese manufacturers their competitive edge, and it 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,” a ministry spokesperson said.
Dumping occurs when a company exports a product for less than it charges at home or below the cost of production. WTO rules let an importing country impose additional tariffs, known as anti-dumping duties, if an investigation finds that imports injured domestic producers. Chinese officials haven’t announced such a finding in this case.
Brussels seeks trade results
In August, European Commission President Ursula von der Leyen said the EU had opened 30 trade-defence investigations in a year, nearly triple the usual rate, as Chinese imports rose 45% in five years. The article described Brussels as running a €1 billion-a-day deficit with China. The EU has warned of “harsher measures” unless Beijing delivers concrete results.
Sefčovič is due in Beijing on October 8–9 to co-chair a session of the EU-China Trade and Investment Council and meet Commerce Minister Wang Wentao. His visit follows a deadline Brussels set in June for the first tangible results from its dialogue with Beijing.
The EU wants assurances that China will curb exports to the bloc and extend a truce on rare-earth exports. Beijing has warned that it will respond firmly to new EU restrictions on Chinese companies or products.
In an interview with Euronews the previous month, Sefčovič called the talks highly political and said negotiations had to produce concrete results. He warned that without them, “a strong political movement to push for, I would say, harsher measures” would follow. 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.”
A deadline after Beijing
EU leaders are due to meet in Brussels on October 15–16, a week after Sefčovič’s trip. The Beijing investigation and the EU’s trade-defence actions frame the dispute facing the talks, alongside the bloc’s requests on exports and rare-earths. The Chinese inquiry should conclude within 12 months, though the ministry can grant a six-month extension.