China's Ministry of Commerce (MOFCOM) announced that at the request of the China Animal Agriculture Association, representing the Chinese domestic industry, it will launch an anti-dumping investigation into certain pork and pig by-products originating from the EU, stressing that the move is in line with relevant Chinese laws and regulations as well as World Trade Organization (WTO) rules. The announcement came just days after the European Commission (EC) announced that it would impose additional tariffs of between 17.4% and 38.1% on electric vehicles (EVs) imported from China starting on July 4, though MOFCOM denied there was any connection between the two. The investigation started on June 17 and will be completed by June 17, 2025. The duration could be extended by six months in special circumstances. “The authorities will conduct the investigation in accordance with the law, fully protect the rights of all stakeholders, and make objective and fair rulings based on the investigation results,” a MOFCOM official said.
The investigation could have major implications for the EU meat industry. In 2023, China imported USD6 billion of pork products, more than half of which came from the EU. Spain and France are among the EU's top exporters of pork to China. In 2023, Spain exported CNY6.04 billion worth of pork to China, the Netherlands' pork exports totaled CNY1.86 billion and France's exports reached CNY1.07 billion, according to the General Administration of Customs (GAC). The difference between the EU's decision to impose additional tariffs on Chinese EVs and China's probe on EU pork imports is that the latter was launched at the request of the industry in China and the former was a decision taken by the EC without an application from the EU industry, and according to MOFCOM, the EU's investigation process was unfair, not objective and in potential violation of WTO rules.
Cui Hongjian, Professor with the Academy of Regional and Global Governance of the Beijing Foreign Studies University, said that starting in 2023, there has been a significant increase in the EU's exports of certain pork and pig by-products to China, which warrants an investigation into its pricing in compliance with WTO rules. Cui added that the EC taking the initiative in the EV case showed that it is increasingly viewing economic and trade issues through a security and political lens, which is completely different from an investigation based on market conditions. Such a shift toward geopolitics has jeopardized normal economic and trade cooperation between China and the EU. “There will be countermeasures against the EC's move, as Chinese officials have repeatedly vowed to take all necessary measures to safeguard the legitimate rights and interests of Chinese companies,” Bai Ming, Research Fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times. Bai said that China and the EU could resolve trade disputes through dialogue and consultations, but “the EC has destroyed the atmosphere of cooperation with its illegal, protectionist move against Chinese EVs”.
The Chinese dairy industry also plans to apply for an anti-subsidy investigation into imports of certain dairy products from the EU and China is planning to raise the temporary tariff rate on imported cars with engines larger than 2.5 liters – a move that could have a major impact on imported vehicles from the EU, the Global Times reports.
Data from the General Administration of Customs (GAC) showed China imported some 1.34 million metric tons of pork and pork by-products from the EU last year. The potential inability to export pork offal, which has limited demand in Europe due to dietary preferences, could lead to increased pressure on sales and potentially impact pork prices within the EU, further affecting the bloc’s livestock sector, said Shi Teng, Agriculture Analyst with China Merchants Securities. Meanwhile, China’s self-sufficiency in pork production and its limited reliance on imports will ensure a secure pork supply chain and stable prices, mitigating the potential consequences of import reductions, Shi said. China achieved a cumulative pork production of 57.94 million tons in 2023. Meanwhile, the country’s imports of pork remained minimal, down nearly 12% from the 2022 levels, the China Daily adds.
