Further, Mr Pandia feels, it is necessary to set up a high-level working group to study the hidden subsidies and cost structure of Chinese chemical manufacturers, which are able to export their goods almost 60 per cent cheaper than Indian products. This group would comprise representatives from industry associations, ministry of external affairs and other related bodies. u According to Mr Pandia, China is not yet inducted in the World Trade Organisation and accordingly, does not feel it necessary to reply to investigation questionnaires sent even by the India Government. ``Their representatives too, do not think it necessary to be present during the hearings''.

The need for imposing CVD arises from the fact that ``Of the total 59 cases of anti-dumping against China, 60 per cent of these are relating to chemicals industry, also, China figures in four of 10 more cases where levy of provsional duties have been recommended; of these half relate to chemicals. This indicates that China is targeting India's chemical industry and may soon even target commodity specific industries, of which soda ash and caustic soda are two recent examples."

In fact, China has better infrastructure set up better than India, which coupled with others like low power cost, favourable labour policy, low import duty etc, help Chinese producers to export at such low prices. ``This is belived to be because of "hidden subsidies" given by the Chinese government to its various industries. Chinese chemical exports aided by such facilities have dealt severe injury to domestic manufacturers.''