BRUSSELS, July 19 (Reuters) - The European Union is set

to impose provisional duties on Chinese biodiesel after finding

it is being sold in EU markets at unfairly low prices, in the

latest in a string of trade cases against China.

The European Commission, which oversees EU trade policy, has

proposed setting provisional tariffs of between 12.8 and 36.4%,

according to a document published on Friday. They are due to be

imposed in mid-August.

The investigation is due to continue until February, when

definitive duties for five years could be set.

The EU has already set provisional duties for electric

vehicles made in China over what it sees as unfair subsidies in

its most high-profile case.

For biodiesel, proposed duties are 12.8% for EcoCeres

Group products, 36.4% for Jiaao Group, including Zhejiang Jiaao

Enproenergy Co, and 25.4% for exports by Zhuoyue

Group, including Longyan Zhuoyue New Energy Co

The European Biodiesel Board (EBB), which lodged the

complaint, said earlier this month that a flood of biodiesel

from China was having a devastating effect on EU production.

Chevron Renewable Energy Group had furloughed German

workers, Shell had paused construction of a Dutch plant, BP was

pausing a project in Germany and Argent Energy had closed a

biorefinery, EBB said.

"While Chinese imports are not the only reason for these

decisions, the biodiesel dumping has contributed to the

difficulties producers face," it said.

It says Chinese companies exported 1.8 million tonnes of

biodiesel to the European Union in 2023, 90% of all Chinese

biodiesel exports.

The European Waste-based and Advanced Biofuels

Association said it welcomed the measures, adding it believed

they would prompt a normalisation of market conditions from an

"extremely adverse" situation since late 2022.