The European Commission is preparing an investigation: China evades customs duties through the Western Balkans

The European Commission is preparing an investigation into the importation of certain building materials from several countries in the Western Balkans, suspecting that Chinese-made glass fibers, subject to anti-dumping and anti-subsidy tariffs, are being circumvented through local producers in these regions. According to Euronews, citing an anonymous source familiar with the case, the commission is considering launching an inquiry into so-called open mesh fabrics used in thermal insulation systems among other applications. This development comes amid increased pressure from the European Union on inexpensive Chinese imports, which contribute to a daily trade deficit with China of around one billion euros. In June, Brussels initiated negotiations with Beijing aimed at balancing trade relations, with specific results expected by October, when the European Commissioner for Trade, Maroš Šefčovič, is scheduled to visit China. The commission has warned that it may resort to trade protection instruments if necessary to prevent unfair practices that, according to Brussels, allow China to bypass European customs duties. Open mesh fabrics are often produced using Chinese glass fibers, which the European Commission believes are sold at unfairly low prices, harming the European industry. As a result, the EU has imposed additional tariffs on such products in recent years, including imports from Egypt, where Chinese companies operate, reports Euronews. There is now suspicion that Chinese manufacturers are circumventing anti-dumping and anti-subsidy measures by utilizing producers in certain Western Balkan countries who assemble finished products from Chinese glass fibers. According to data from the Glass Fibre Europe association, approximately one million tons of melted glass are produced annually in eight member states, including Germany, France, and Italy. Simultaneously, Chinese production capacity for glass fibers exceeds the annual demand on the EU market by more than 100 percent, increasing the risk of further harm to European producers if protective trade measures are not strengthened. Over the past year, there has been an increase in cases where Chinese companies are suspected of engaging in unfair trade practices across different industrial sectors. At the same time, the European Commission has faced criticism over the prolonged duration of investigations. In mid-June, leaders of member states gave the Commission a mandate to review and update trade protection instruments. According to Euronews, Brussels is also considering additional protective measures, including new tariffs and import quotas, to protect the European chemical industry against increasingly aggressive Chinese competition. The European Commission did not respond to Euronews' request for comment.