Legally fiawed, economically wrong

Robert MacLean, a trading partner at the law firm Crowell & Moring in Brussels who represents Chinese exporters, said the expected decision to impose the anti-dumping duties will be both legally flawed and economically wrong.

"I think what is missing is injury. European industry has not shown any injury," he said. "We think this decision is more politically motivated than technically motivated."

Chinese exporters had argued that as their products sold to Europe are standard fasteners mainly for general industrial use and DIY markets and are different from European ones which are of high strength and are mainly for car industry, earth-moving industry and airplanes, there should be no serious damage to the European industry, a key requirement to impose the anti-dumping duties.

"Chinese fasteners and European fasteners are complementary with each other. They do not compete directly in the market," the association said in a statement.

They were particularly angered at the EU decision that two Chinese units of two European companies, namely Italy's Agrati and Spain's Celo which were behind the complaint, will be exempted from the duties.

"EU granted special treatment to EU invested companies in China, which is totally unfair to Chinese producers," Zhang said.

In the context of the financial crisis and a looming recession in Europe, MacLean said he could not see the reason behind the duties.

"We are wondering why they are doing it because the European industry needs raw materials to produce cost-effective goods for consumers," he said. "We do not understand why some industries are asking for financial help, the Commission is penalizing them by having extra costs on to their production."

The European car industry, a heavy user of fasteners, is demanding funding support from the EU and some member states.

"If you have financial crisis, the last thing you want to do is to increase production cost for your industries," MacLean said.