Europe taking aim at plastic bags, too
By Jiang Wei (China Daily)
Updated: 2005-07-07 06:24

Chinese plastic bags makers have become the latest target of EU dumping charges, following similar moves against the country's footwear makers.

The European Union said in a statement it will launch an anti-dumping investigation into certain plastic bags and sacks made in China, Malaysia and Thailand.

Some of Chinese enterprises concerned in making plastic-based bags and sacks have been actively preparing for the suit, according to Liu Jianli, a lawyer with the Beijing-based Allbright Law Office.

"So far, eight to nine enterprises have called us for consultations," she said.

Zhang Chunhua, general manager of a plastic bag maker in Nantong, East China's Jiangsu Province, said his company would respond to the suit.

All of the company's exports to EU countries are involved in the case. In 2004, its exports of such items to the EU stood at US$4 million to $US5 million.

Companies involved have to submit the information required to the EU within 15 days.

Like other anti-dumping charges in the EU, Chinese firms should first strive for market economy treatment so as to win favourable treatment.

There are 1,000 to 2,000 enterprises in China that produce and exports various plastic-based bags and sacks.

Most of the companies involved are located in Guangdong, Shangdong, Jiangsu and Zhejiang provinces.

Zhang said some of these companies were likely to give up the EU market, since their exports to the EU are not large.

The complaint against Chinese products was initiated by 30 European producers of certain products, who represent some 25 per cent of the total production of the economic bloc.

The European enterprises claimed in their complaint that the Chinese plastic sacks and bags were being dumped and this had led to material injury to the domestic industry.

The products under investigation are plastic sacks and bags from China containing at least 20 per cent polyethylene and with a thickness not exceeding 100 micrometers.

The European Commission will have a maximum of 15 months to conclude its investigation.

In case Chinese enterprises are eventually charged for dumping, they will be forced to pay high duties for their exports to European countries.

Last year, it was alleged that China had dumped plastic bags and sacks in the United States. Duties of up to 77.03 per cent were imposed.

Chinese exporters worry about a nightmare scenario if they lose the European market, too.

China has been the largest target of anti-dumping cases in the world for nine successive years while its foreign trade volume surpassed US$ 1 trillion last year

One out of seven anti-dumping charges by members of the World Trade Organization (WTO) was made toward products originating from China since the establishment of the General Agreement on Tariff and Trade, the predecessor of WTO, in 1995.

In 2004, 31 dumping investigations were launched against China by the developed countries, up 20 per cent over the previous year. The cases cover a large range, from furniture, to shoes, to textiles.

The country has encountered two anti-subsidy cases launched by Canada and a number of technology barriers in various industries.

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