As the European Union tightens its trade defences against a flood of cheap Chinese imports, a new challenge is emerging: Chinese companies are openly advertising ways to dodge the bloc's tariff barriers. From transhipment through countries like Morocco and Turkey to minimal product alterations, these practices are testing the limits of EU enforcement.
France, Italy, Spain, the Netherlands, and Lithuania have jointly alerted the European Commission about what they describe as "increasingly blurred and complex actions" to avoid EU customs duties. In an informal proposal drafted last month, the five urged improvements to the EU's anti-circumvention framework, arguing it must "guarantee the legal effect and the effectiveness of its existing trade defence measures." The document refrains from naming any specific Chinese company.
Investigations by European Pulse have uncovered Chinese logistics firms and manufacturers openly offering circumvention services online. Shenzhen-based Xin Rui Da Logistics, for instance, advertises "anti-dumping research and providing transit trade solutions for third countries" on its website. The company claims to have solved trade barrier problems for exporters of restricted products, re-routing goods through Malaysia, Sri Lanka, Taiwan, India, Thailand, Singapore, Indonesia, Bangladesh, and Hong Kong. Its product range includes e-bikes, steel, aluminium, and plywood—all sectors hit by EU anti-dumping duties in recent years. Xin Rui Da did not respond to requests for comment.
These practices are not necessarily illegal unless EU businesses can prove they harm domestic industry. But they have prompted the European Anti-Fraud Office (OLAF) to investigate the true origin of certain products. With the EU facing a wave of Chinese overcapacity, tariff circumvention has become a pressing concern, stretching the resources of EU officials as European producers lodge a growing number of complaints.
Chemical Sector Under Siege
The chemical sector is particularly exposed. European producers are already under pressure from excess Chinese production capacity, which has led to a surge of imports and increased competitive pressures. In response to a complaint by EU producers, the European Commission imposed anti-dumping duties on titanium dioxide (TiO2), a strategic chemical used in green technologies and aerospace. The duties were provisionally introduced in July 2024 and made definitive on 9 January 2025.
Yet some Chinese producers have adapted quickly. Nina Zhu, director of Zontai Titanium Dioxide in Guangdong, wrote on LinkedIn months before the tariffs took effect: "EU anti-dumping duties will be implemented at the end of the year. It is recommended to prepare inventory in advance to provide you with various titanium dioxide solutions." Contacted by European Pulse, Zhu confirmed the company could supply products with a TiO2 content below 80 percent to avoid the duties.
Later, in 2025, the NanJing Titanium Industry International described its new mixed TiO2 as "top-quality with excellent performance," adding: "What's more, its unique features allow you to bypass certain regional anti-dumping duties, saving costs significantly. A game-changer for your business!" The company did not respond to requests for comment.
In some cases, Chinese firms begin offering circumvention services as soon as the EU launches an anti-dumping investigation. After the Commission opened an investigation into Chinese TiO2 producers on 13 November 2023, a manager at Shandong-based Titan Industry posted on LinkedIn offering EU customers certificates of origin for shipments routed via Vietnam or Thailand "to cope with the anti-dumping duties imposed by the EU." Such certificates could have hidden the true origin of Chinese-made products. The company later removed the post, telling European Pulse it had stopped offering such solutions as they were not allowed, and is instead "establishing a new TiO2 factory in Vietnam."
The challenge for Brussels is akin to a game of whack-a-mole. As one loophole is closed, new ones appear. The EU's trade defence tools, designed for an earlier era of global trade, are struggling to keep pace with the sophistication of Chinese circumvention networks. The bloc's ability to protect its industries—from steel to solar panels to chemicals—will depend on whether it can adapt its enforcement mechanisms quickly enough.
This issue is part of a broader debate about Europe's economic sovereignty. As former Italian Prime Minister Enrico Letta has argued, the EU must integrate more deeply to avoid subordination to both the US and China. The circumvention problem underscores the urgency of that message: without stronger tools, European industries risk being undermined by practices that exploit gaps in the bloc's defences.
