EU announces anti-circumvention investigation of fasteners exported by China through Malaysia

The European Union announced on the 28th that it was conducting anti-circumvention investigations on Chinese companies that are suspected of bypassing Malaysia’s export of fasteners to the EU to escape anti-dumping measures.

According to Reuters, if there is evidence that the tax evasion of Chinese exporters has harmed the interests of EU manufacturers, the EU may impose a maximum tax of 85% on the screws and bolts imported from Malaysia.

The European Union’s move is equivalent to increasing the protection of its 4 billion euro (US$ 5.51 billion) screw and bolt market.

It is understood that the EU launched anti-dumping investigations on nut, bolt and other fastener products imported from China in November 2007 and, in spite of opposition from the Chinese side, decided in early 2009 to impose a formal anti-dumping tax of up to 87% for a period of five years. At the end of July of that year, China filed a consultation request under the WTO dispute settlement mechanism on this EU anti-dumping measure. This is the first time since China’s accession to the WTO that it has resorted to the dispute resolution mechanism of the organization to seek a solution to the trade dispute with the European Union.

In response, a spokesperson for the Ministry of Commerce of the People's Republic of China has repeatedly stressed that the EU should not abuse trade remedy measures and encourage protectionism.