EU to launch investigation into Chinese dumping – Foreign Brief

Today is the deadline for the French company Metex to close its lysine factory.

The French company Metex has accused China of flooding the European market with lysine. Lysine is an amino acid that is mainly used as an additive in animal feed, especially poultry. In response to these allegations, the European Commission launched an investigation into Chinese lysine imports.

Metex’s factory – the only one in Europe producing lysine – is facing closure as it faces a difficult financial situation due to rising production costs and competition from Chinese imports. In response to the EU’s investigation into China’s trade practices, Beijing has launched its own investigation into polyoxymethylene copolymers, a chemical exported to China by the EU and US.

The French government and Metex’s business partners such as Bpifrance will likely play a major role in helping Metex keep the company afloat. In the short term, the Paris Commercial Court or another French court is expected to announce rescue procedures and restructuring efforts for Metex. The EU investigation into China’s trade practices could lead to tariffs and other restrictions to limit lysine imports from China. China is likely to respond with similar trade barriers. In the longer term, mutual retaliation and chemical-related investigations are expected as part of a broader trade conflict between China and the EU.