The European Commission is considering opening an investigation into imports of open mesh fabrics from several Balkan countries. The move stems from suspicions that these imports are being used to circumvent EU anti-dumping duties imposed on Chinese glass fiber.
The suspected circumvention involves Chinese producers utilizing local manufacturers in Balkan nations to assemble open mesh fabrics. These products are made using low-cost Chinese glass fiber, allowing them to enter the EU market while avoiding specific tariffs levied on direct Chinese exports.
Open mesh fabrics used in thermal insulation systems are the primary focus of this potential inquiry. The European Commission has previously accused Chinese producers of selling glass fiber at unfairly low prices on the EU market, alleging that this practice causes injury to European manufacturers.
According to industry group Glass Fibre Europe, Chinese glass fiber overcapacity exceeds 100 percent of total EU market demand. The EU currently produces around 1 million tonnes of melted glass annually from installations in eight countries, including Germany, France, and Italy.
Broader trade tensions
This potential probe occurs as the EU’s trade deficit with China stands at approximately €1 billion per day. Sources describe this figure differently, with some characterizing it as record-high while others state it as about 1 billion euros per day.
Over the past year, the number of cases involving alleged Chinese unfair trade practices across several industrial sectors has increased. The EU has targeted glass fiber with additional duties multiple times in recent years, including imports from Egypt produced by Chinese companies.
EU leaders gave the European Commission a mandate to review and update its trade defence instruments at a summit in mid-June. Concurrently, the Commission launched negotiations with Beijing in June to rebalance trade ties, expecting tangible results by October.
EU Trade Commissioner Maroš Šefčovič is expected to travel to China in October. The European Commission has faced criticism for the length of its investigations into alleged Chinese unfair trade practices. The Commission did not respond to a request for comment on the matter.