The European Union will begin an anti-dumping investigation into biodiesel imports from China, which the bloc’s industry said has slashed domestic production.

In August, it began investigating whether biodiesel from Indonesia was circumventing EU duties by going through China and Britain.

The latest investigation, Reuters reported, prompted by a complaint from producer group the European Biodiesel Board (EBB), will cover the period from October 1, 2022 to September 30 last year.

The probe will take up to 14 months.

“EU producers have submitted evidence of biodiesel imports from China coming into the EU at artificially low prices and claim that these imports are seriously harming their industry because they cannot compete with such low prices,” the European Commission said in a statement.

China has been the biggest biodiesel exporter to the 27-member bloc in 2023, the EBB said in a separate statement.

“In 2023, Chinese dumped imports have caused a collapse in the market and production sites closed in several member states,” the EBB added.

In addition to the possible transit of Indonesian biodiesel, there were structural imbalances in biodiesel trade with China, with prices not reflecting the advanced or waste-based biofuel categories that most cargoes have been classified as, it said.

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China “firmly opposes protectionist behaviour that abuses trade remedy measures,” Chinese Ministry of Commerce spokesperson Shu Jueting said when asked about the investigation at a regular press conference.