The European Union has launched an anti-dumping investigation into imports of a flame-retardant chemical from China, the executive European Commission said.

The investigation follows a complaint lodged by Europe's leading chemicals lobby in June and will look at imports of tris (2-chloro-1-methylethyl) phosphate.

"The complainant has provided evidence that imports of the product under investigation from the country concerned have increased overall in absolute terms and in terms of market share," the Commission said in its official journal, adding there was evidence that the product's pricing hurt EU industry.

The announcement follows recent EU decisions to investigate Chinese trade practices in the paper, ceramics, chemicals and bicycle industries and is likely to aggravate EU-Chinese relations.

Officials from the 27-country EU have until October 2011 to impose protective duties on the chemical, and these could remain for up to five years.

Duties could benefit European producers of the compound. A person familiar with the case said these included Germany's BASF and Lanxess.

The probe will test the production costs and export pricing practices of selected Chinese producers. Dozens of firms produce the flame retardant in China, including Morris Chemical, Wellchem and Polymate Additives Co, the person said.