There are currently many issues relating to China exports, one of which is the EU's probe into alleged subsidies in to Chinese industry, further highlighting concerns that the Yuan is undervalued. The investigation's goal is to figure out whether the Chinese Government grants aids to domestic paper manufacturers so that they can sell their products in Europe at prices below production costs (dumping). The case may result in the EU imposing an anti-dumping tariff on coated fine papers with Chinese origins to help Europe producers to compete against cheap imports.
It also emerges that China has come to a “consensus” on adjusting its exchange rate gradually and wants to avoid the impression of bowing to U.S. pressure by allowing appreciation.
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