🇪🇺 EU Targets Chinese Plywood in Latest Defence of Domestic Industries

1. Background: Rising Concerns Over Chinese Hardwood Plywood

In recent months, the European Union has ramped up trade-defence measures against Chinese hardwood plywood imports. These actions stem from long-standing worries among European producers that Chinese manufacturers are undercutting them with exceptionally low-priced, subsidized plywood—possibly even using illegally sourced Russian timber to bypass EU restrictions.

The issue first gained momentum in October 2024, when the European Commission (EC) launched a formal anti-dumping investigation following a complaint from the Greenwood Consortium—a coalition of EU plywood manufacturers including members from Poland, Finland, France, and the Baltic states.

2. Scope and Scale of the Investigation

The probe covers hardwood plywood (excluding bamboo and okoumé) ≤6 mm thick, under HS codes 441231, 441233, 441234.
It reviews imports between July 2023 and June 2024, with longer-term trends since 2021 .
To ensure transparency and prevent stockpiling, all Chinese plywood shipments have been registered at EU borders since late 2024.

3. Explosive Growth and Alleged Dumping

From January to August 2024, Chinese hardwood plywood exports to the EU surged by approximately 23%, reaching around 837,000 m³—valued at about $514 million, while average unit prices tumbled by ~2.2% lesprom.com+1tadexply.com+1.
Meanwhile, Russia exported 249,000 m³ of hardwood plywood to China—a 74% year-on-year jump—raising concerns that some of this timber ends up in EU-bound Chinese plywood linkedin.com+13lesprom.com+13tadexply.com+13.

These dramatic import volumes have reportedly depressed EU market prices, squeezing domestic producers who employ around 10,000 workers wbpionline.com+5lesprom.com+5tadexply.com+5.

4. Evidence of Dumping: Margin Estimates

Preliminary findings from the EC suggest dumping margins as high as 335%, with domestic injury elimination levels of up to 224% . The Greenwood Consortium has highlighted that major players like Pizhou Jiangshan Wood Co. could face provisional duty rates around 25.1%, while other Chinese producers might be hit with 62.4% duties.

5. Provisional Anti-Dumping Duties and Next Steps

On 12 May 2025, the EC introduced provisional anti-dumping duties ranging up to 62.4% on hardwood plywood imports from China. These duties are temporary—protecting the EU market during the ongoing investigation.

Definitive duties may follow in 14 months.
Importers will still be registered in case retrospective duties are applied.

6. Industry Reactions: Division or Consensus?

The trade policy has stirred varied reactions:

Greenwood Consortium and Paged Group praise the move as essential to protect EU producers.
The Plywood Trade Interest Alliance, representing importers, warns that sweeping restrictions on Chinese plywood may raise costs, disrupt supply chains, and strain trade relations—urging a more nuanced focus on illegal Russian-sourced wood.

7. Why It Matters: Global Trade & Strategic Balance

This case highlights broader EU–China tensions. Following tariffs on Chinese electric vehicles, aluminium, solar panels, and more, this plywood investigation shows how trade defence is being used across diverse sectors .

For EU consumers and businesses, higher plywood prices may ripple through construction, furniture, packaging, and logistics industries. Conversely, a successful protection could revitalize Europe’s hardwood plywood capacity and support its 10,000-strong workforce.

8. What Comes Next?

Mid‑2025: Industry parties submit feedback on provisional duties.
Late‑2026: EC expected to issue definitive findings—either upholding duties or dismissing allegations.
EU importer strategy: Diversify sourcing—possibly turning to Southeast Asia or boosting local EU production—and monitor registry filings to avoid retroactive duty surprises.

Conclusion

The EU’s latest move against Chinese hardwood plywood reflects a broader strategy to assert fair trade norms and protect its domestic industries. With provisional duties already in place—and retrospective measures looming—this action could offer much-needed support for EU plywood producers. However, it also stokes ongoing debate over free trade versus protectionism across Europe.

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