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

China's commerce ministry has initiated an anti-dumping probe into chemical imports from the European Union, just days before the EU's trade chief is set to discuss trade issues with Beijing. The EU trade commissioner, Maros Sefcovic, is scheduled to hold crucial talks with his Chinese counterpart, Wang Wentao, next week to prevent a potential escalation of trade measures.

The Chinese ministry stated that domestic industry has requested the investigation into the alleged dumping of low-priced p-nitrotoluene into the Chinese market, claiming it damages production and operations. This chemical is used in the manufacturing of dyes, pharmaceuticals, and pesticides. Tensions between China and the EU have been escalating, with fears of a full-blown trade war as both sides seek to defend their industries against what they perceive as unfair competition.

The EU had already launched an investigation into polyvinyl chloride imports from China in September. The Chinese ministry assured that the anti-dumping investigation will last up to 12 months, with the potential for a six-month extension.