Alexa
  • Directory of Taiwan

Chinese screwmakers complain that EU trade probe is unfair

Chinese screwmakers complain that EU trade probe is unfair

Chinese screwmakers complained Tuesday about the threat of EU trade sanctions, saying they would hurt consumers without helping European producers.
The European Commission opened an investigation in November into allegations that Chinese manufacturers were breaking global trade rules by selling a flood of screws at 30 percent to 50 percent below European prices.
If officials find evidence to back European companies' claims, extra charges on screws used in furniture and cars could be slapped on Chinese imports as early as August.
A group of Chinese manufacturers from Jiaxing city in Zhejiang province in eastern China _ representing a quarter of Chinese screw exports _ said the trade probe was unfair because it was not comparing like with like as the EU now specializes in stronger and more expensive screws.
"BMW would buy a fastener of above (tensile strength) 8.8 to put in their car. You and I would buy a screw ... below that from China to put a picture in the wall or fix something in our house," said their lawyer, Robert MacLean.
The Chinese companies said it was unfair to be singled out for below-cost prices because they charge the same as Taiwanese producers and more than rivals based in Malaysia, Vietnam and India.
The Jiaxing group alone depends on Europe for a third of its sales, worth US$220 million (euro149 million) a year.
Recent price surges for steel mean that they are now charging 50 percent more than they did during the period the EU is investigating _ from Oct. 1, 2006 to Sept. 30, 2007 _ the group said.
They also alleged that the EU probe was not well-founded because two Italian businesses asking for sanctions _ Agrati SpA and Vescovini Group _ also produce in China.


Updated : 2021-04-20 00:51 GMT+08:00