China's Strategic Trade Response: Anti-Dumping Investigation Targets EU Pork Products
In a significant trade development, China has initiated an anti-dumping investigation against pork imports from the European Union (EU). This move, announced by the Chinese Ministry of Commerce, is widely seen as a counteraction to the European Commission's decision to impose punitive tariffs on electric cars imported from China. This investigation, targeting products intended primarily for human consumption, will begin on Tuesday and could last up to a year, with a possible six-month extension.
The investigation will scrutinize imports from the EU over a four-year period, from 2020 to the end of 2023, for alleged unfair competition. China, a significant consumer of pork, imported around €5.6 billion in pork products in 2023, over half of which came from the EU, with Spain being the largest exporter followed by the Netherlands, Denmark, and France.
Spain's Minister of Agriculture, Luis Planas, expressed optimism about resolving the issue through dialogue, underscoring that 'trade wars are not good for anyone.' The products under investigation include fresh, chilled, or frozen pork meat, various pork by-products such as intestines, bladders, and stomachs, and pork fat in several forms.
The backdrop of this investigation is the European Commission’s findings that Chinese electric vehicle manufacturers benefit from state subsidies, creating market distortions in Europe. Consequently, the EU plans to raise tariffs on these vehicles up to 48.1%. The Chinese government has labeled these findings as 'protectionist,' urging Brussels to reconsider its stance and threatening further measures to protect its companies.
China's reaction was anticipated; experts have long speculated about potential countermeasures. Jacob Gunter of Berlin's Merics Institute noted that Beijing would avoid imposing tariffs on essential EU products but would likely target agricultural and food products that can be substituted by domestic production, such as pork.
- The Ministry of Commerce of China registered the complaint from the China Animal Husbandry Association on June 6, which has led to this investigation. This investigation follows a similar probe into EU brandy announced in January, primarily hitting French producers. Beijing's latest move signals a developing trade conflict centered around import regulations and state subsidies.
- Chinese media have hinted at additional countermeasures, including potential actions against the EU’s **aeronautical sector** and **large displacement vehicles**. The European Commission has reserved the right to pursue legal action and ensure compliance with World Trade Organization (WTO) regulations.
