The Ministry of Commerce Photo: VCG

 
China firmly opposes protectionist practices through the abuse of trade remedies, and will "closely watch" the EU's investigation of Chinese biodiesel dumping allegations, a spokesperson from the Ministry of Commerce (MOFCOM) said at a regular press briefing in Beijing on Thursday.

The European Commission (EC) said in a statement on Wednesday it would begin an anti-dumping investigation into biodiesel imports from China based on a complaint by EU biodiesel producers, which claimed that imports from China were coming into the EU at "artificially low prices" and harming the domestic industry.

In response, Shu Jueting, a MOFCOM spokesperson, said on Thursday that the Chinese side firmly opposes protectionist practices through the abuse of trade remedies, and advocates for the reasonable and prudent use of trade remedy measures. 

"We will closely monitor the EU's subsequent actions," Shu said. 

"If dumping is confirmed and is found to be harming EU producers, the commission may impose measures (typically duties on imports) to remedy the effects of the unfair trading if such measures are in the EU's interest," an EC statement said. 

"The initiation of an anti-dumping investigation by the European Commission into Chinese biodiesel is regrettable. Moreover, we express serious concern and strong dissatisfaction regarding the Commission's choice to use surrogate prices instead of the Chinese domestic price for assessing the 'normal value' of biodiesel," China Chamber of Commerce to the EU (CCCEU), said in a statement it sent to the Global Times on late Thursday.

Chinese biodiesel production showcases innovation by primarily utilising waste oils and fats, which aligns well with the EU's principles of a circular economy and sustainable development, earning positive reception in the European market, CCCEU said.

Collaboration between Chinese and European companies can foster innovation, benefiting both sides in advancing energy transition, circular economy practices, and low-carbon initiatives, said the Chamber.

China's advanced biodiesel industry is strongly complementary to the EU market, an industry player told the Global Times on Thursday, and the EU's move will greatly impede and raise the cost of the bloc's green transformation efforts.

"China has abundant waste oil resources and advanced waste oil raw material treatment technology, which can provide the EU with high-quality, economical and advanced biodiesel products, and play an important role in the EU's carbon emission reduction goals," said the person, who asked to remain anonymous.

The EU is the world's largest consumer of biodiesel. Importing biodiesel products from China meets the substantial demand in the EU and contributes to accelerating its green transformation and achieving its energy conservation and emission reduction goals, Shu said.

China and the EU have complementary advantages in new energy sources and green industries such as biodiesel, with broad prospects for cooperation. Strengthening cooperation is conducive to mutual benefit, supports the EU's green transformation and contributes to global efforts to address climate change, Shu said.

Shu also pointed out that since 2008, the EU has taken various trade remedy measures, including anti-dumping and countervailing duties, and anti-circumvention measures, against biodiesel products exported by trading partners such as the US, Canada, Indonesia and Argentina. Such practices have been repeatedly brought to the dispute settlement mechanism of the WTO. 

The EU market in biodiesel is worth 31 billion euros ($33 billion) annually, providing a renewable alternative to fossil fuels in the EU's transport sector and improving the EU's security of energy supply, according the EC.

Global Times