China announced Thursday it would impose anti-dumping tariffs on a chemical imported from various nations in the European Union. Beijing said the duties would be imposed as of June 28 and stay in place for five years.

The Chinese government explained the punitive taxes would affect a substance called toluidine which is an important agent required to produce dyes, medicines, pesticides and other products.

The Commerce Ministry said tariffs would range from 19.6 percent to a maximum of 36.9 percent on the imported chemical.

Tit-for-tat policies

"The product under investigation was dumped in China and the domestic toluidine industry suffered material injury," the ministry said in a statement on its website. Reuters news agency reported that a major producer of the chemical, Lanxess of Germany, would have to face 19.6-percent duties on its exports to China.

The Chinese announcement came as the Asian country and the EU continued to be at loggerheads over a series of trade disputes covering solar panels, telecommunications equipment, wine and steel pipes.

Total trade between the two sides already fell by 3.7 percent last year, with Chinese exports to the 27-member bloc dropping by 6.2 percent while trade in the opposite direction remained almost unchanged year-on-year.

hg/ rg (AFP, Reuters)