PRESS STATEMENT: AEGIS Europe expresses shock at the scale of fraud committed by Chinese exporters uncovered by OLAF

Brussels, Wednesday 8 March 2017 - “AEGIS Europe is shocked at the scale of the fraud, uncovered by the European Anti-Fraud Office OLAF, and committed by Chinese exporters who have deprived the EU of more than €5 billion Euros in lost revenue, as reported in the press* today”.
The OLAF investigation demonstrates that China is strategically targeting certain countries with illegal trade practices including dumping, circumventing duties and avoiding VAT.  This reinforces findings in a recent report by the European Chamber of Commerce in China ‘Manufacturing 2025’ shows that China is engaging in “a carefully orchestrated industrial strategy,” which includes policy tools such as subsidies, continued support for inefficient state-owned enterprises, limiting market access for foreign business, and state-backed acquisitions of companies from the EU and elsewhere.
The OLAF investigation highlights that there are serious weaknesses in customs enforcement in the UK, which also has major implications for the enforcement of trade defence measures against illegal Chinese dumping into the EU. According to media reports, UK authorities have allowed dumped Chinese goods to harm not only the EU economy but also their own economy.
Turning a blind eye to the issue of systemic circumvention activities, by importers of products from China, poses grave risks for the European economy. AEGIS Europe calls on the EU and member states to strengthen and invest in their customs capabilities. Stronger customs forces will generate benefits many times over in terms of additional customs revenues and prevent job losses and lost growth to China's destructive dumping, which currently puts domestic European industries out of business,” said Milan Nitzschke, spokesperson for AEGIS Europe, an alliance for nearly 30 European manufacturing associations.
* Politico article