Foreign trade: After punitive tariffs: China investigates EU pork

Foreign trade: After punitive tariffs: China investigates EU pork

Brussels is threatening to impose punitive tariffs on Chinese electric cars. Beijing has long warned against standing idly by. Now the Chinese Ministry of Commerce is reacting.

China has announced an anti-dumping investigation into imported products from the European Union. The investigation is aimed at imported pork and by-products, the Ministry of Commerce in Beijing announced. This is likely to be a counter-reaction by Beijing to the punitive tariffs on Chinese electric cars threatened by the EU. The EU Commission had previously investigated China’s subsidies for electric vehicles, which Brussels believes distort the market in Europe.

The Chinese state newspaper “Global Times” had already reported, citing an insider, that the Chinese industry was collecting evidence for the investigation into certain dairy products and pork from the EU. However, the newspaper did not provide any further details in the articles on the online platform X.

Mainly meat for consumption affected

Products that are primarily intended for human consumption are affected, the Ministry of Commerce said. The authority cited fresh and frozen pork or slaughter by-products as examples. According to Chinese customs, China imported pork worth 23.2 billion yuan (just under three billion euros) last year. According to data from Brussels, the EU exported pork products worth around 2.5 billion euros to China in 2023.

This is not the first investigation by China into European products. In January, the Ministry of Commerce announced an investigation into brandy from the EU. This mainly affected manufacturers in France.

Experts expected a backlash

Experts had expected a counter-reaction from China after the EU threatened to impose punitive tariffs. However, Beijing will not impose tariffs on EU products that it still needs, said Jacob Gunter from the Berlin-based Merics institute. “These include machines, high-quality industrial goods, chemicals, medical technology and other products.” Large European car manufacturers are likely to be spared because, according to Gunter, they invest heavily in China, create jobs, pay taxes and contribute to growth.

According to Gunter, the targets are likely to be agricultural, food and beverage products that Chinese consumers can do without or that Chinese producers themselves produce in sufficient quantities, such as pork.

Source: Stern

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