2020-04-06: The European Commission already established that Chinese state-backed enterprises receive illegal export subsidies and dump glass fibre reinforcements ("GFR") in the EU at predatory prices. As Chinese GFR manufacturers relocated production to avoid legitimate trade defence measures, GlassFibreEurope called on the EU to act against illegal dumping and subsidies related to imports of GFR from Egypt and Bahrain.Read More
GlassFibreEurope represents the interests of European glass fibre manufacturers and their 5,000 employees. Glass fibre reinforcements (GFR) is a strategic sector for Europe’s future because new materials made with it are stronger and lighter than traditional materials.
By way of background, the European Commission already established that Chinese state-backed enterprises receive illegal export subsidies and dump glass fibre reinforcements (“GFR”) in the EU at predatory prices to destroy European production. In this regard, EU anti-dumping and anti-subsidy duties between 25% and 30% continue to be in place against GFR imports from China.
As Chinese GFR manufacturers relocated production to avoid those legitimate trade defence measures, GlassFibreEurope called on the EU to act against illegal dumping and subsidies related to imports of GFR from Egypt and Bahrain. Indeed, since 2015, imports from Egypt into the EU have increased by over 200%, depressing sales of EU production in a growing market. Jushi, China’s largest state-owned glass fibre manufacturer, alone has global capacity one-third greater than the total EU market, and its subsidiary Jushi Egypt is the only producer in Egypt.
Hence, in June 2019, the European Commission launched an investigation into Jushi Egypt’s illegal subsidies, on the basis of “evidence of a number of subsidies imputable to the Government of Egypt…… and evidence of the cooperation agreements between the Chinese and the Egyptian Governments, as well as of loans from Chinese State-owned or State-controlled entities to Egyptian State-owned banks.”
In March 2020 the European Commission found that Jushi Egypt has indeed been benefiting from substantial subsidies and imposed provisional EU anti-subsidy measures. The adoption of definitive measures is expected by July. GlassFibreEurope has now temporarily withdrawn its anti-dumping complaint to focus on securing the anti-subsidy measures and is considering further actions.
GFE is also awaiting definitive European Commission action in investigations of aggressive unfair competition from Chinese companies in relation to EU imports of certain woven and/or stitched glass fibre fabrics (‘GFF’) originating in China and Egypt. According to the European Commission, the two main offending Chinese companies, Jushi and Hengshi, have failed to cooperate, and Hengshi even provided false and misleading information during the Commission’s verification visit. The Commission found that “the imposition of measures is clearly in the interest of the Union GFF industry, whose survival is threatened by the dumped imports of the product concerned”, and has proposed both anti-dumping and anti-subsidy duties on these imports, around 100% in the case of China and nearly 40% in the case of Egypt. The definitive AD duties were published already.
GlassFibreEurope understands the final measures on GFF imports will be published in the coming weeks.