European glass fibre producers have lodged an anti-dumping complaint against Chinese manufacturers operating out of Egypt alleging that they benefit from unfair subsidies and calling for duties to be applied, according to two sources familiar with the issue.
The case will be closely watched coming days before US President-elect Donald Trump is inaugurated. Trump has threatened to impose heavy tariffs on Chinese products, and European manufacturers fear that there may be corresponding increases of deflected Chinese imports to Europe via other 'Belt and Road Initiative' routes.
The complaint follows a decision by the European Court of Justice last year which found that the European Commission is allowed under EU law to consider that subsidies granted by the Government of China could be attributed to the Government of Egypt and therefore countervailed in an investigation of imports from Egypt.
“This investigation is crucial. They have set up these companies in an economic zone that amounts to an extension of the Chinese territory abroad, enabling them to circumvent the anti-dumping measures taken in 2014 against companies established in China,” Cedric Janssen, the secretary-general of industry body Glass Fibre Europe, told Euronews, adding: “As a result, China's glass fibre capacity is expanding both domestically and abroad, leading to a surge in undercutting imports on the European market.”