China launches anti-dumping investigation into European imports of p-nitrotoluene

The Chinese Ministry of Commerce launched an anti-dumping investigation on Saturday into imports of a chemical product from the European Union (EU), less than a week before the arrival in Beijing of the European Commissioner for Trade. According to the Ministry of Commerce, Chinese industry has requested an investigation into whether imports of low-priced European p-nitrotoluene were flooding the country's market, pointing to "harm to production and operations."

This chemical is used in the manufacture of dyes, medicines and pesticides. Long-standing trade tensions between Beijing and Brussels threaten to turn into a full-blown trade war. The 27 largely attribute their colossal trade deficit with China (around a billion euros per day) to unfair practices by Beijing, which they accuse of destroying entire sections of European industry.

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For its part, China denies that the competitiveness of its companies relies on state support and has threatened to take countermeasures against EU initiatives. The European executive, which has increased initiatives to protect the single market (in particular via a tax on small Chinese parcels and a doubling of customs duties on steel), has at the same time initiated a “dialogue” with Beijing, to try to resolve these commercial tensions amicably.

Discussions are to be held on Thursday between Maros Sefcovic, European Commissioner for Trade, and the Chinese Minister of Commerce, Wang Wentao. In September, the EU launched an investigation into imports of polyvinyl chloride from several countries, including China. The Chinese investigation into p-nitrotoluene must be completed within 12 and a half months maximum, the ministry said.