China launches anti-dumping probe into EU chemical imports ahead of trade talks

China's commerce ministry has launched an anti-dumping investigation into the import of a chemical widely used in production from the European Union, just days before EU trade chief Maros Sefcovic is set to meet Chinese commerce minister Wang Wentao. The investigation, prompted by complaints from domestic Chinese industry about low-priced imports damaging their production, targets p-nitrotoluene, a chemical used in the manufacture of dyes, pharmaceuticals, and pesticides.

Beijing alleges the EU's low-cost imports are flooding its market, threatening domestic production. The EU and China have been engaged in escalating trade tensions, with both sides threatening retaliatory measures. EU trade commissioner Sefcovic and Wang Wentao are scheduled to hold crucial talks next week to prevent an escalation of tit-for-tat trade actions.

The EU's investigation into polyvinyl chloride imports from China, also launched in September, could lead to a six-month extension. The Chinese ministry insists the EU must address its own economic and trade issues through dialogue instead of resorting to trade measures.