In reaction to restrictions on its exports of electric vehicles, China has launched an anti-dumping probe into imported pork and its by-products from the European Union. This move seems to be primarily directed at Spain, the Netherlands, and Denmark.

The probe will concentrate on pork meant for human consumption, including fresh, chilled, and frozen whole slices, as well as swine bladders, stomachs, and intestines. This was disclosed by China’s commerce ministry on Monday. Investigating will start on June 17.

According to the ministry, it was sparked by a complaint that the China Animal Husbandry Association filed on June 6 on behalf of the country’s pig sector.

Global food industries are on high alert for retaliatory tariffs from China following the European Commission’s June 12 decision that it will apply anti-subsidy taxes of up to 38.1% on imported Chinese autos starting in July.

China receives the majority of its pig supply from Spain, whose pork producers organisation Interporc declared that they will assist Chinese authorities in their probe to the fullest.

Interporc stated in a statement, “The EU and China have plenty of time to reach agreements.”

While the examination is ongoing and until the Chinese side makes a judgement and announces tariffs, European pork producers should be able to continue exporting to China duty-free.

The probe should be finished by June 17, 2025, according to China’s trade ministry, although it may go longer if necessary.

Danish Agriculture& Food Council, a lobby organisation, issued a warning on Monday, stating that any limits on shipments to China would “hit incredibly hard” the nation’s pig industry.

If Beijing curbs imports from the European Union, pork providers from South America, the US, and Russia may be among those gaining market share.

China’s official First published late last month, the Global Times tabloid quoted an unnamed “business insider” to say that Chinese companies intended to request that authorities launch an anti-dumping probe into some European pig exports.

On June 8, a second article in the same publication asked officials to investigate imports of European dairy products.

Chinese officials have already made suggestions about potential punitive actions in talks with business leaders and state media commentary.

A representative for the European Commission assured reporters that the EU will take the necessary action to guarantee that the inquiry complies with all applicable World Trade Organisation regulations and that the bloc was not concerned about China starting its probe.

According to customs statistics, China imported pork worth around $6 billion in 2023, of which about a quarter came from Spain alone. More than half of China’s imports of pork came from the EU.

The Netherlands and Denmark, ranked second and third respectively, sent pork products worth $620 million and $550 million to China last year.

Prior to the Commission’s announcement of its ruling on whether Chinese manufacturers of electric vehicles profit from unfair government subsidies, China’s commerce minister, Wang Wentao, visited judges in Spain earlier this month.

“This is not surprising in light of the EU electric vehicles probe, as it will not be the first time that a probe announced in one jurisdiction is responded to in kind,” stated Jens Eskelund, head of the European Union Chamber of Commerce in China.

“Free and open markets rely on rules-based trade practices,” he stated.

Concern over China’s industrial overcapacity is growing. Bringing in inexpensive goods, especially electric vehicles (EVs), is creating a new front in the West-Beijing trade war that started in 2018 with Washington’s import tariffs.

The EU’s trade policy is becoming more defensive against the worldwide effects of China’s debt-driven, production-oriented economic model.

In order to safeguard domestic businesses, governments usually impose anti-dumping tariffs on imported products when they believe the product in issue is being sold for less than its cost of production.

(Adapted from WionNews.com)

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy