The European Commission published Saturday the notice of initiation of an anti-subsidy investigation of coated fine paper (CFP) imports from China. This investigation follows the opening on February 18 of an anti-dumping investigation of imports of the same product.“These investigations are essential because of strong evidence of dumping, which is aggravated and spurred on by massive subsidies by the Chinese government to build up national champions with huge excess capacity,” said Frank Leerkotte, Managing Director of Cepifine. "The EU industry could not wait any longer to request these investigations due to the pace of the increase in imports of dumped and subsidized CFP from China and the negative impact they are having in the European market.” “European producers are clearly in the path of an oncoming flood of subsidized imports which are entering the EU market at industry-destroying prices. The increased Chinese production will continue to pour into the EU, and the subsidized prices will overwhelm the Union producers unless appropriate anti-subsidy measures are imposed quickly,” Leerkotte continued.Despite global overcapacity, Chinese producers are set to add nearly six million tons of capacity in the next three years, more than doubling current production. That increase alone is equivalent to 120 percent of EU consumption in 2009. The rise of unfair imports is jeopardizing European industry and jobs, according to Cepifine. “Without EU intervention the European industry will rapidly be supplanted by Chinese manufacturers. Once domestic competition is eliminated the Chinese would freely raise prices,” Frank Leerkotte said.As already established by the US government on 2 March, Chinese CFP producers receive substantial subsidies, which encourage over-production and exports. The US government is due to issue its findings on the dumping case within weeks. As a result of the US actions, unfairly traded Chinese products going to the US will necessarily be redirected to Europe.