The European Union plans to launch an anti-dumping investigation into China's exports of aluminum wheels.

The China Automobile Association (CAA) told the Beijing Daily that the EU Trade Commission is to open an official investigation into the dumping of Chinese aluminum wheels by August 14. If the anti-dumping charge is upheld, the EU will impose a tariff of up to 33 percent on Chinese exports of aluminum wheels for a 5th successive year.

The CAA said it will actively fight the charge and defend the legitimate rights of Chinese enterprises. "Chinese manufacturers export aluminum wheels to the EU at a higher price than in the domestic market, so it doesn't constitute dumping," said Xiong Chuanlin, CAA's Vice General Secretary. Xiong thinks the EU move is unnecessary, since Chinese exported wheels only have a small share of the EU market, and are positioned as middle and low-end products.

From last July to June 2009, China's exports of aluminum wheels to EU totaled US$390 million, making up less than 8 percent of the EU market. Overall, China's imports of auto parts from the EU far exceed the value of China's exports.

If the anti-dumping measures continue, they will not only impact Chinese producers but also undermine European multinationals' global operations and supply chains, which in turn will affect European consumers.

EU anti-dumping investigations usually last 15 months, but once the charge is in place, enterprises have to submit a response within 37 days. Chinese wheel makers are actively making preparations for the case. Even if an anti-dumping charge is upheld, the tariff imposed on them will be much lower than on companies that fail to respond.

For more information, please consult the original coverage in Chinese at:

http://news.qianlong.com/28874/2009/08/13/3042@5123001.htm

(China.org.cn by Maverick Chen, August 13, 2009)