After complaints from European manufacturers, the European Union has initiated an anti-dumping investigation on cheap imported plywood. This move has opened another front in the trade conflict between Europe and China, further exacerbating tensions with Beijing.
According to the Financial Times, European manufacturers have raised concerns about the surge in imports of low-cost hardwood plywood from China. They believe that much of this Chinese plywood actually originates from Russia. Following Russia’s full-scale invasion of Ukraine in February 2022, the EU had already banned imports of Russian timber.
In response to the EU’s latest investigation, the Woodstock Consortium, representing forest owners, loggers, producers, and suppliers, emphasized the importance of this investigation in protecting the entire EU hardwood plywood value chain.
The consortium also highlighted that unfair-priced Chinese imports – which currently appear to involve cheap Russian timber prohibited by the EU – pose a threat to the survival and job opportunities of many European businesses.
Poland, Finland, France, and Baltic countries are the main locations of European hardwood plywood manufacturers. The consortium stated that this industry employs 10,000 workers.
To prevent companies from evading tariffs by stockpiling goods during the investigation period (which could last nearly a year), the EU will implement new rules for the first time. All imported Chinese goods must be registered at the EU border. If the EU decides to impose tariffs, they will be retroactive.
According to Eurostat data, in 2023, the EU imported approximately 750,000 cubic meters of hardwood plywood from China, valued at 327 million euros. This accounts for over half of the EU’s imports and 30% of the entire EU market.
The EU has already imposed tariffs on birch plywood imported from Kazakhstan and Turkey after finding some Russian product components in these products.
Birch plywood products consist of boards and are mainly used in the construction, packaging, and furniture industries. The EU mentioned that Russian manufacturers are seeking alternative channels to sell their products.
Last week, the EU voted to impose tariffs of up to 45% on Chinese electric cars, prompting China to retaliate by implementing “temporary anti-dumping measures” on European exports of brandy. Beijing has also initiated anti-dumping investigations into EU pork and dairy products.
As tensions escalate, both sides have filed multiple complaints at the World Trade Organization regarding each other’s trade defense measures.
The EU has consistently criticized China’s industrial subsidy policies as they allow Chinese companies to export surplus products at below-cost prices. The EU has initiated investigations on over a dozen products from China, including solar panels, wind turbines, tin plate, adhesive, and monosodium glutamate.
As China expands into industries where Europe was once dominant, the EU is compelled to safeguard these industries.
Alicia García Herrero, a senior researcher at the Brussels-based think tank Bruegel, stated that the EU Commission’s decision to impose tariffs on Chinese electric cars indicates that the era of engagement-based EU-China relations is over.
“Now, China and the EU are competing with similar products in third-party markets. Fair play rules are more crucial than ever before,” Herrero said.
Several other countries, including the US, Morocco, Turkey, and South Korea, have already imposed punitive tariffs on Chinese timber imports.
European Council President Charles Michel met with Chinese Premier Li Keqiang during the ASEAN summit in Laos on Friday, amid the escalating trade disputes between Europe and China.
Michel, in an interview with AFP, described the meeting as “frank.” He stated that the EU urges China to “adjust its behavior” and recognizes the need to “rebalance economic relations” for fairer competition and a more equitable competitive environment.