Major EU-China antidumping cases

Briefing 31-05-2016

In 2015, China remained by far the major target of antidumping (AD) investigations initiated by the European Commission. With a total of 53 AD measures in force against imports from China in that year, the country ranked ahead of Indonesia (10), Malaysia (6), Russia (6), India (5) and Taiwan (5). All six new AD probes in 2015 concerned the country, although Russia and Taiwan were also targeted in two of those. AD duties imposed in past probes and expiring between 2016 and 2020 are concentrated in labour- and resource-intensive sectors, such as bicycles, ceramics, chemicals, solar panels and steel sectors, and concern industries with significant employment levels. A review of some key AD cases in these sectors shows that, besides circumventing AD duties, Chinese exporters have increasingly engaged in litigation against the EU before the EU Courts in order to avoid non-market economy treatment. In parallel, the Chinese government, which has become an active user of all available steps of the dispute settlement mechanism of the World Trade Organization (WTO) more generally, has challenged both procedural and substantive aspects of the EU Antidumping Regulation, while it has also employed what may be perceived as 'tit for tat' or retaliation strategies and its increased bargaining power through diplomatic channels. Against the backdrop of unprecedented over-capacity in Chinese heavy industries, notably in the steel sector, and an unabated surge in Chinese steel imports into the EU, in February 2016 new AD investigations into several steel products from China were launched. For details of the methodology for 'Calculation of dumping margins', at the heart of all antidumping cases, see the EPRS publication by Laura Puccio, PE 583.794.