The pulp and paper giant said it is “surprised” at the launch of a pricing investigation which addresses allegations that the Chinese government provides subsidies to its domestic paper industries.
The furore has been instigated by Cepifine, the European association of fine paper producers. According to APP, it is the first anti-subsidy investigation against China by the EU.
Earlier this month, the European Commission launched an investigation after Chinese paper manufacturers were accused of selling coated fine paper into the European market at prices “below normal levels”.
Frank Leerkotte, Cepifine managing director, said Chinese producers have been “very aggressive” and undercut prices by a “fantastically high amount”.
“Based on the information and evidence we have provided, the Commission has taken the difficult decision to launch an investigation,” he said.
“We are not looking for protection, but demand a level playing field. It is very obvious they are selling below cost price.”
Zheng Rui, executive director of APP-China, told ProPrint that the investigation is “totally unwarranted”, and that the company has “serious concerns regarding the validity and legitimacy of the initiative”.
“Many publishing companies are struggling because of the financial crisis, leading to a significant reduction in demand,” he said. “However, the investigations initiated by the western paper companies broke the principle of fair competition in international trade and disregarded the benefits of local downstream industries and consumers.
“We will prove that our competitive advantage is the result of long term strategic investments, state-of-the-art technology and effective processes, fully in line with international trade law and practices.”
Read the original article at www.printweek.com.
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