Ceramics makers face EU inquiry

More than 2,000 Chinese household ceramics manufacturers may be affected by a possible anti-dumping investigation by the European Union.

The European Commission has sent a note to the China Mission to the European Union about the inquiry into household ceramic kitchen utensils from China, according to a China Ceramics Industrial Association statement.

If the case is formally filed, which, according to the announcement, would most likely happen this month, it would be the second after Indonesia launched a similar investigation into the sector. Dumping involves the export of over-abundant goods at below-cost prices. It is frowned upon because it is uncompetitive and undermines local producers.

Last year, the European Union imposed an anti-dumping tax on Chinese building ceramics.

The new investigation poses a major threat to manufacturers. Exports to the EU stood at more than $700 million last year, according to the China Ceramics Industrial Association.

Unlike building ceramics, of which only 1 percent of the total exports goes to the EU, 11 percent of China's household ceramics are exported to the market.

A possible anti-dumping tax is bad news for Chinese ceramics enterprises because they are already struggling with a meager profit margin, industry observers said.