Europe under threat from China chemicals dumping

By the Editorial Team · Tuesday, July 7, 2026

Sir Jim Ratcliffe, chairman of Ineos, accused China of flooding the European chemical market with low-priced exports that undercut local manufacturers, leading to factory closures and job losses. He called on the European Commission for stronger trade protections to counteract China's excess production capacity and the resulting market and environmental impacts.

Sir Jim Ratcliffe, chairman of the petrochemicals company Ineos, has accused China of dumping chemicals into the European market at unsustainable prices, putting the continent’s chemical industry at risk. In an open letter addressed to Ursula von der Leyen, president of the European Commission, Ratcliffe urged stronger protective measures against what he described as unfair trade practices.

Ratcliffe argued that China is deliberately producing chemicals in excess of domestic demand, creating significant overcapacity. This surplus, he said, is being exported to Europe at prices that European manufacturers cannot compete with, leading to factory closures and job losses across the industry. He emphasized that China’s chemical sector is seen as strategically important to its national security, driving decisions to maintain or expand production despite market conditions.

“China does not have superior economics for chemical manufacture, so it is very clear that when our industry has shut down, prices will rise rapidly and consumers will suffer,” Ratcliffe wrote. An additional concern highlighted by sources within the industry is the environmental impact, with chemicals produced in China reportedly carrying twice the carbon footprint compared to those made in Europe.

A report commissioned by Ineos and prepared by Oxford Economics last October found that imports of Chinese chemicals into the European Union increased by approximately one-third since 2019. The report attributes this rise to China’s excess production capacity and stockpiling, which result in greater export volumes to the European market.

Ineos, founded in 1998, operates roughly 150 manufacturing sites across 27 countries and employs about 24,500 people. The company reported a significant increase in pre-tax losses last year, rising to $593.1 million from $71.1 million the previous year. In March, Ineos signaled potential delays to the delivery of a new plant in Belgium, citing volatility in global energy markets as a factor impacting operations.

The European Commission has been contacted for comment but has yet to provide an official response. Meanwhile, industry leaders continue to call for intervention to address concerns over market distortions and protect the European chemical sector.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.