BRUSSELS, Feb 26 (Reuters) - Chinese screw-makers called on the European Union on Tuesday not to hit their exports with anti-dumping duties, saying European companies and consumers would also suffer.

In an unusually public move, a group of Chinese businessmen held a news conference in Brussels to press home their message that cheap imports did not pose a threat to the EU.

The 27-nation bloc is split on how to respond to globalisation, pitting pro-free trade countries such as the Nordics against others such as Italy and France who say China breaks trade rules costing European jobs.

"We want to use this channel to urge European Union consumers and importers to fight with us as this case represents their interests too," said Tu Zhiqing, deputy secretary of the Jiaxing Association of Fasteners Import and Export Companies.

The European Commission is investigating whether Chinese fasteners -- or screws -- are being dumped in the EU after complaints by producers in countries including Italy, Germany and France.

China is expected to export $1 billion worth of screws to the EU in 2008, according to Chinese producers. Tu said EU firms no longer produce many of the kind of low-end screws made in China.

The Commission may impose duties from August. If it does, Chinese producers could ask Beijing to take action against the EU at the World Trade Organisation, Tu said.

Chinese companies argue the EU should not take into consideration the arguments of European screw companies which have invested in China, something that would mean too few EU companies were backing the case for it to be pursued.

Those EU companies could escape duties if the Commission deems their business practices to be in line with those of a normal market economy, something not usually granted to Chinese firms, said trade lawyer Robert MacLean of Crowell & Moring. His firm is working for the Chinese exporters.

No one was available for comment at Paris-based European Industrial Fasteners Institute which filed the complaint.

The EU has also recently launched investigations into imports of several types of steel and of wax candles from China.

EU trade chief Peter Mandelson has put on hold his review of the bloc's anti-dumping rules, saying differences between European capitals are too deep for a deal on possible reforms.

(Reporting by William Schomberg; editing by Keith Weir)

Reuters Tuesday February 26 2008

Source: www.guardian.co.uk