EU trade commissioner Peter Mandelson is set to propose tariffs on Chinese products that benefit from alleged subsidies after a year-long review of the EU's trade defense instruments, the Financial Times reported. The proposal is strongly supported by EU governments, but less so by industry. The EU sees China as a "non-market economy," so it accepts prices that are not set by free competition. But its trade deficit with China is increasing. Mandelson will call for countervailing duties to be applied to companies that have received "market" status in previous anti-dumping cases. The proposal is expected to be presented on December 5.