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China hits EU imports with tariffs

By Jiang Wei (China Daily)
Updated: 2007-02-06 09:48

The Chinese government imposedanti-dumpingtariffs on potato starch imports from the European Union yesterday after a one-year investigation.

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China's commerce ministry yesterday said it would begin to levy punitive duties of between 17 percent and 35 percent.

"The move will save our industry from disaster," said Zhou Qingfeng, director of the Chinese commission on potato starch.

He said less than 30 percent of the country's potato starch production capacity was in operation in 2005 due to low-priced EU products, but it increased to about 60 percent last year after the preliminary ruling was made.

The price of potato starch went from 4,600 yuan to 4,800 yuan per ton last year after the preliminary ruling, from less than 4,000 yuan per ton in 2005.

Potato starch is widely used in a number of industries including food processing, pharmaceuticals, textiles and feed.

In December 2005, 17 Chinese starch manufacturers fromHeilongjiang,Qinghai,GansuandYunnanprovinces and theInner MongoliaAutonomous Region filed a petition to the commerce ministry against their EU rivals. They claimed that the European players were selling potato starch to China at below cost.