Ceramics makers face EU inquiry
Updated: 2012-02-16 14:39
By Zheng Yangpeng (chinadaily.com.cn)
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BEIJING — More than 2,000 Chinese household ceramics manufacturers may be affected by a possible anti-dumping investigation by the European Union.
The European Commission has sent a note to the 皇冠体育app Mission to the European Union about the inquiry into household ceramic kitchen utensils from 皇冠体育app, according to a 皇冠体育app Ceramics Industrial Association statement.
If the case is formally filed, which, according to the announcement, would most likely happen this month, it would be the second after Indonesia launched a similar investigation into the sector. Dumping involves the export of over-abundant goods at below-cost prices. It is frowned upon because it is uncompetitive and undermines local producers.
Last year, the European Union imposed an anti-dumping tax on Chinese building ceramics.
The new investigation poses a major threat to manufacturers. Exports to the EU stood at more than $700 million last year, according to the 皇冠体育app Ceramics Industrial Association.
Unlike building ceramics, of which only 1 percent of the total exports goes to the EU, 11 percent of 皇冠体育app's household ceramics are exported to the market.
A possible anti-dumping tax is bad news for Chinese ceramics enterprises because they are already struggling with a meager profit margin, industry observers said.
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