The European Union has decided to slap a 5-year dumping tax on Chinese seamless steel pipes. The pipe-makers say the move is unwarranted if not protectionist.

Shangdong Zhengzhong Steel Pipe is one of China's largest steel pipe producers. It does not export a great deal to the EU market. But indirect output to other Chinese exporters who do ship to the EU accounts for 20 percent of its business.

Xu Fuliang, general manager of Shandong Zhongzheng Steel Pipe, said, "I firmly oppose the EU's move. It is against the WTO's free trade rules. This will harm China's seamless steel pipe industry. In the longer term, it is not good for the EU's seamless steel pipe industry either."

Tianjin Pipe Corp is China's largest base for producing gas pipelines. Last year saw it emerge as the number one exporter in the country. The firm believes that Chinese products meet normal market demand.

The company says that what the EU is doing will not just hurt Chinese manufacturers, but also eventually damage its own industry.

Zhang Wenfeng, vice GM of Tianjin Pipe (Group) Corp, said, "Our export volume is closely related to the EU's economy, and prices are decided by market demands. We did not dump any pipes into the EU. As to the incredibly high punitive tariffs, the EU labels most Chinese companies as not market-oriented. This runs counter to facts. We can't accept it."

Figures show, the number of Chinese pipes shipped to the EU during the first 8 months this year shrinking more than 70 percent year on year. While the total trade volume was down over 64 percent. The double decrease has made Chinese steel pipe makers question the real reason behind the EU's anti-dumping decision. Industry insiders believe the move lacks evidence, and smacks of trade protectionism.