Brussels, 21 December 2023

Reuters: The European Commission plans to launch an anti-dumping investigation into Chinese biodiesel; what is the chamber's comment?

CCCEU: The initiation of an anti-dumping investigation by the European Commission into Chinese biodiesel is regrettable. Moreover, we express serious concern and strong dissatisfaction regarding the Commission's choice to use surrogate prices instead of the Chinese domestic price for assessing the "normal value" of biodiesel.

Recent years have seen an imbalance in biodiesel production and demand within the EU, leading to increased biodiesel imports from China. Notably, compared with the use of vegetable oils such as palm oil, soybean oil, rapeseed oil, etc. to produce biodiesel, Chinese biodiesel production showcases innovation by primarily utilising waste oils and fats, which aligns well with the EU's principles of a circular economy and sustainable development, earning positive reception in the European market.

The EU stands as the world's largest biodiesel market, and we empathise with the challenges faced by EU enterprises, including the escalating costs of energy and ingredients for production. However, we caution against the potential repercussions of heavily relying on trade defence measures and adopting excessively high surrogate price calculations in this investigation. This approach risks harming both Chinese enterprises' interests and the resolution of genuine challenges faced by local businesses, potentially leading to a "lose-lose" outcome detrimental to the EU's renewable energy goals.

We call on EU regulators and industry stakeholders to objectively consider China's biodiesel industry. There are substantial growth opportunities within the EU, China, and the global biodiesel market. Collaboration between Chinese and European companies can foster innovation, benefiting both sides in advancing energy transition, circular economy practices, and low-carbon initiatives. Embracing cooperation holds the key to effectively advancing mutual goals.