China to fight EU over screws, bolts at WTO

By Darren Ennis

BRUSSELS (Reuters) - China will challenge at the World Trade Organisation anti-dumping duties on Chinese-made screws and bolts imposed by the European Union in January, sources with knowledge of the case said on Friday.

"Mofcom (China's commerce ministry) is going to seek WTO dispute settlement consultations in the EU fastener case over the legal process used by Brussels," one source told Reuters.

If the consultations fail, Beijing could request a panel to hear the case, leading to lengthy and costly litigation. Initial consultations normally last around 60 days.

It would be the first case taken by China against the EU at the global trade watchdog.

The import duties, of up to 85 percent, target as many as 200 Chinese companies selling components widely used for cars, white goods and machinery in the EU worth some 575 million euros (497 million pounds) a year.

Chinese manufacturers had asked Beijing to take the EU to the WTO, arguing Brussels was protecting European companies amid the worst global economic slowdown in 80 years.

"I think China is absolutely right to take this step," said Robert MacLean, a partner at law firm Crowell & Moring who represented a large portion of the Chinese industry in the EU probe.

"These kinds of dubious decisions, where it is clear that no injury is being suffered by European industry as a result of Chinese imports, must be properly scrutinised under the WTO microscope and the necessary corrections made.