The European Commission is imposing temporary anti-dumping duties on ceramic tiles imported from China. The levies will be in effect for six months. Yu Li has details of how this will impact Chinese tile-makers.

The anti-dumping probe, targets nearly all major Chinese tile makers. A 300 million yuan industry. The majority of tiles are made in Guangdong Province.

EU member countries will decide whether to replace the temporary duties with a five-year levy, when these measures expire.

The final decision will be announced September 17th.

China's tile exporters were surprised by the decision. A number of businesses have been planning to set up research and development bases in the EU. But for the time being, they will focus on the current issue.

The EU is the third largest export destination for Chinese tiles. Their products account for 10 percent of the region's market share.

Chinese exported ceramic tiles sold in Europe are about 10 percent cheaper than locally produced ones.

The temporary duties will add an additional 26-to-73 percent to the cost of the tiles. That will take away any price advantage.

This could also force Chinese tile makers to leave the European market and seek opportunities in the Middle East and Africa, which have long been ignored.

Industry insiders say they will intensify contacts with EU businesses, dealers and officials, and lobby them to abort anti-dumping duties, before a final decision is made.

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