China has begun levying an anti-dumping tax on a chemical imported from the European Union and the United States, the Commerce Ministry said on Tuesday, the latest in a string of issues that could fuel rising trade tensions.

Trade ties have been strained by a series of dumping disputes, including a major one involving solar materials between China and the European Union.

The ministry said China would impose duties of 27.6 percent on European exports of perchlorethylene, a chemical used in insect repellent and refrigerants, according to a statement on its website, www.mofcom.gov.cn

A tax of 71.8 percent will be imposed on exports of the chemical by U.S. companies, including Dow Chemical Co. and Occidental Chemical Corp., it said.

The duties took effect from May 31 and will run for five years. The ministry did not explain why it was targeting this chemical now, nor why there was such a difference in the levies.

The United States won a trade dispute with China last month over duties on U.S. exports of large cars and sport utility vehicles.

Source:Reuters