EU to Conduct First Trade Investigation into Industrial Subsidies by Chinese Gov

European Commission is preparing for the first investigation into subsidies provided by Chinese Government for its domestic industries. This investigation may lead to new tariffs levied on a range of Chinese products exported to Europe.

China's paper and pulp industry surged in the past five years in production capacity and in export to Europe, other China's industries similar to this situation. In 2009, China exported 220,000 tons of coated paper to Europe, much more than the export volume of 65,000 tons in 2006.