EU Probes Chinese Wheel Dumping Complaint

On 14 August, the European Commission began an investigation into the alleged ‘dumping’ of Chinese-made aluminium wheels into the European market. The investigation followed Association of European Wheel Manufacturers’ (EUWA) June complaint that the practice has been taking place. “Having determined that there is sufficient evidence to justify the initiation of a proceeding, the Commission hereby initiates an investigation,” Reuters quoted the journal of the executive arm of the 27-nation European Union as saying. China's Ministry of Commerce denied the charges saying: “It raises the cost of repairs for customers, affects the recovery of the European auto sector from the global financial crisis, and hurts the interests of both China and Europe'” in a statement on the Ministry's website.

The investigation launched by the EU reportedly involves more than 60 Chinese companies, and Chinese sources estimate it will cause US$390 million in economic losses to wheel exporters. The Chinese Xinhua news agency speculated that if an anti-dumping judgment is made, the EU may levy tariffs of up to 33 per cent on Chinese aluminum alloy hubs for five years.