China hits EU-US chemicals with anti-dumping duties in rising trade spat

CHINA has applied anti-dumping duties on European and US exports of chemical solvents, the Commerce Ministry announced on its website, increasing the tempo of growing trade spat.

The five-year anti-dumping duties on glycol and diethylene glycol, used in solvents, came into effect January 28, the ministry said on its website. Ranging from 9.3 - 18.8 per cent, the duties affect Eastman Chemical Company, Equistar Chemicals, LP from the United States, and BASF (Badische Anilin und Soda Fabrik) from Europe.

A US recently appled anti-dumpting duties for five years on wind towers from China and Vietnam. US producers have complained that unfair Asian competition was forcing them to close plants and shed jobs.

The US Commerce Department earlier in January set preliminary duties ranging up to 154 per cent on imports of a food additive and thickening agent from China, and Austria, to offset what it said were unfair low prices.

The US and the EU have deployed anti-dumping duties to stop the flow of what they say are unfairly priced and subsidised imports from China, and the Chinese have responded in kind.

Said the ministry statement: "The glycol and diethylene glycol produced in Europe and the United States is being dumped in China, which has caused substantial damage to China's domestic industry."

Germany's BASF said it would likely accept the duties on the two products, but added that its products were fairly priced.

Said BASF: "To actively take part in such proceedings requires considerable efforts and costs, which cannot be justified for all products."