TRADE disputes are escalating not only between the United States and China, but the European Union and China as well.

The EU announced today an anti-dumping tariff of up to 20.6 percent on its imports of aluminum alloy wheels from China in a preliminary ruling.

It said that Chinese wheels were sold at an unfairly low price in Europe, sending sales of EU manufacturers to a nosedive and causing price wars.

Aluminum alloy wheels are widely used in the production of cars.

The case came after an EU decision in December to extend trade charges on Chinese and Vietnamese leather shoes by 15 months to protect European shoe makers. The EU also announced an anti-subsidy investigation into its imports of coated paper from China last month.

Last Friday, the EU raised a request to the World Trade Organization to solve trade disputes over China's anti-dumping duties imposed on carbon steel fasteners from the EU, which took place last month.

China also demanded the establishment of an expert panel under the WTO to evaluate the shoe case, and announced a review of anti-dumping duties imposed in 2007 on imports of potato starch from the EU a move which may lead to an increase in the tariffs.