China seeks to restrict pork imports from EU countries
China's Ministry of Commerce unveiled an Anti-Dumping investigation against EU products, with a focus on imported pork and related goods. This move is allegedly a response to the EU's proposed tariffs on Chinese electric vehicles.
Pork and related products are the main targets of this investigation, as revealed by the Chinese Ministry of Commerce. If enforced, this could be China's way of staging a counterattack against the EU's planned tariffs on their electric vehicles.
The EU Commission had earlier scrutinized China's subsidies for electric vehicles, claiming they artificially inflate the market in Europe. The Chinese state newspaper "Global Times" reported, citing a source, that the Chinese industry was gathering evidence for this investigation, focusing on particular dairy products and pork from the EU. Yet, the publication did not disclose any further information about X.
The affected products primarily consist of those meant for human consumption, the Ministry of Commerce confirmed. Fresh and frozen pork, as well as processed pork products, are among the examples provided. According to Chinese customs data, China imported pork worth nearly 23.2 billion Yuan (around 3 billion Euros) last year. Data from Brussels indicates that the EU exported pork products worth roughly 2.5 billion Euros to China in 2023.
Experts predicted retaliation
This is not the first investigation China has initiated against EU products. In January, the Ministry of Commerce launched an investigation against Brandy from the EU, predominantly affecting manufacturers in France.
Given the EU's tariff threat, experts anticipated China's retaliation. According to Jacob Gunter from the Berlin-based Institute MERICS, Beijing wouldn't impose tariffs on EU products it still depends on, such as machines, high-end industrial goods, chemicals, medical technology, and other products. Large European automobile manufacturers could potentially escape this as they heavily invest in China, create jobs, pay taxes, and foster growth.
However, agricultural, food, and beverage products might be at risk, Gunter suggested, because they can be replaced by Chinese consumers or produced in sufficient quantities by Chinese producers, such as pork.
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In response to the EU's proposed tariffs on Chinese electric vehicles, China has initiated an Anti-Dumping investigation against EU products, focusing primarily on pork and related goods. This move could potentially escalate the trade tensions between the EU and China, leading to higher punitive tariffs on EU exports to China.
The EU Commission had earlier raised concerns over China's subsidies for electric vehicles, claiming they artificially inflate the market in Europe. This investigation by China is seen as a retaliatory measure, mirroring the EU's threats of tariffs on Chinese electric vehicles.
Despite the potential impact on EU exports to China, experts predict that agricultural, food, and beverage products might be at risk, especially pork, as they can be replaced by Chinese producers or produced in sufficient quantities domestically. This could lead to a significant shift in the EU's foreign trade relations with China, affecting both the EU's exports and China's foreign trade balance.
