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China angered by EU chemical

June 27, 2013

The ongoing trade spat between China and the European Union has entered a new round as the Asian country imposes anti-dumping tariffs on a chemical imported from the EU. A German company is also affected.

https://p.dw.com/p/18xF9
A Chinese paramilitary police officer reacts to having his photograph taken in front of the image of the European Union (EU) flag at the EU embassy in Beijing, China, 02 November 2007. EU officials are proposing increased anti-dumping measures following continued accusations that China is engaging in unfair trade practices, causing friction in bilateral relations. EU steel producers and textile manufacturers claim China hoards an enormous trade surplus while maintaining strict trade barriers. The EU is China's largest trading partner, ahead of the US and Japan, as Chinese exports to the EU increased nearly 21 percent year-on-year in 2006, according to the European Commission. EPA/MICHAEL REYNOLDS +++(c) dpa - Bildfunk+++
Image: picture-alliance / dpa

China announced Thursday it would impose anti-dumping tariffs on a chemical imported from various nations in the European Union. Beijing said the duties would be imposed as of June 28 and stay in place for five years.

The Chinese government explained the punitive taxes would affect a substance called toluidine which is an important agent required to produce dyes, medicines, pesticides and other products.

The Commerce Ministry said tariffs would range from 19.6 percent to a maximum of 36.9 percent on the imported chemical.

EU-China trade dispute escalates

Tit-for-tat policies

"The product under investigation was dumped in China and the domestic toluidine industry suffered material injury," the ministry said in a statement on its website. Reuters news agency reported that a major producer of the chemical, Lanxess of Germany, would have to face 19.6-percent duties on its exports to China.

The Chinese announcement came as the Asian country and the EU continued to be at loggerheads over a series of trade disputes covering solar panels, telecommunications equipment, wine and steel pipes.

Total trade between the two sides already fell by 3.7 percent last year, with Chinese exports to the 27-member bloc dropping by 6.2 percent while trade in the opposite direction remained almost unchanged year-on-year.

hg/ rg (AFP, Reuters)