China launches anti-dumping probe into EU chemical days before Beijing trade talks

China's commerce ministry announced on Saturday that it is investigating whether p-nitrotoluene imported from the European Union is being sold in the Chinese market at unfairly low prices, harming domestic producers. A ministry spokesperson said the probe followed complaints from Chinese manufacturers about damage to their production and operations.

The chemical is used in making dyes, pharmaceuticals and pesticides. The investigation is expected to conclude within 12 months, with a possible six-month extension.

Talks loom in Beijing

The probe comes less than a week before EU Trade Commissioner Maroš Šefčovič visits Beijing on 8–9 October to co-chair a session of the EU-China Trade and Investment Council and meet Commerce Minister Wang Wentao. The trip marks a deadline Brussels set in June for the first concrete outcomes of its dialogue with China.

The move is seen as a response to an EU investigation opened in September into polyvinyl chloride imports, including from China. Beijing rejects claims that its manufacturers' competitiveness relies on state support, and has warned of countermeasures if the EU moves to restrict Chinese firms.

Brussels is seeking assurances that China will curb exports to the EU and extend a truce on rare earth exports, as the bloc's trade deficit with China runs at around €1 billion a day. Commission President Ursula von der Leyen said in August that the EU had opened 30 trade defence investigations in a year, almost triple the usual pace, as Chinese imports grew 45% over five years.

In an interview with Euronews last month, Šefčovič said the talks were highly political and warned that without concrete results there would be stronger political pressure for tougher measures. EU leaders are set to discuss the outcome at a summit in Brussels on 15–16 October.