The European Commission officially announced on Friday (February 6) the imposition of a 79% anti-dumping tariff on ceramic tableware and kitchenware originating from China, replacing the individual tax rates ranging from 13.1% to 36.1% in place for the past five years. This move signifies the EU’s adoption of a more systematic hardline stance in addressing China’s “market distortions.”
The key reason for the EU’s shift towards a unified tariff rate for all regions is the widespread evasion practices found among Chinese manufacturers. According to the European Commission, many companies receiving low tax rates engage in acquiring products from other manufacturers for resale and export, a practice known as “multi-source procurement” and “channelling,” making it difficult for customs to trace the true origin of the products.
The investigation revealed that the audited companies commonly fail to provide necessary production proofs during export, rendering the individual tax rate system ineffective in regulating effectively. These actions have been continuously detrimental to the ceramic manufacturing industry in Europe, leading to the closure of over 60 companies and the loss of nearly 10,000 jobs across Europe.
“The implementation of individual tariff rates has proven to be impractical and could jeopardize the effectiveness of the measure,” stated the European Commission.
The EU investigation further uncovered that China, through its “industrial cluster” strategy, directs resource allocation under government leadership. Detailed action plans have been issued in provinces such as Chaozhou in Guangdong, Fujian, and Hunan, with the goal of establishing ceramic bases with a production value reaching the “billion RMB level.”
Within these clusters, local governments not only adjust water, electricity, and gas prices to reduce business costs but also guide financial institutions to provide funding to support “leading enterprises” in mergers and capacity expansions.
The EU recognizes that under this highly government-intervened structure, production costs in the Chinese ceramic industry no longer reflect market realities, thus necessitating a reference to Turkish data to reconstruct “normal values.”
The “Cerame-Unie,” representing European manufacturers, welcomed this ruling and emphasized the importance of these measures in protecting tableware and decorative manufacturers, who employ over 30,000 employees directly.
The increase in ceramic tariffs is just a microcosm of the trade friction between China and Europe. Out of the 63 ongoing trade investigations within the EU, a significant 47 investigations (about 75%) are targeting Chinese products. With the EU systematically reshaping its trade defense mechanisms, the economic competition and geopolitical rivalry between China and Europe are expected to intensify further.