Amid ongoing trade tensions, China initiates an investigation into European Union pork imports, seen as a retaliation for the EU's recently announced provisional tariffs on China-made electric vehicles.
China has launched an anti-dumping investigation into pork imports from the European Union, a move widely regarded as a response to the EU's decision to impose provisional tariffs on China-made electric vehicles. The Commerce Ministry did not explicitly mention the EV tariffs in its Monday announcement, but the timing and nature of the investigation suggest a connection.
This investigation provides China with leverage in potential trade negotiations. Notably, China could have retaliated by imposing duties on German automakers' imports, but it opted not to do so, possibly due to strong opposition from the German auto industry and their significant production in China.
China Targets European Pork After EU Tariffs on Electric Vehicles
The investigation covers a broad range of pork products, including fresh and frozen meat, intestines, and other internal organs. The announcement states that it is expected to take one year, with a possible six-month extension.
Olof Gill, a spokesperson for the European Commission, emphasized that EU farm subsidies comply with WTO obligations. The commission will closely monitor the investigation and intervene if necessary to ensure compliance.
China Targets European Pork After EU Tariffs on Electric Vehicles
Chinese officials have criticized the EU investigation into subsidies for electric vehicle production in China as protectionist and disregarding WTO rules. The EU plans to impose provisional tariffs of 17.4% to 38.1% on EVs from China for four months starting July 4.
EU pork exports to China reached a peak of 7.4 billion euros in 2020 but have since declined to 2.5 billion euros last year. Nearly half of these exports originated from Spain.
The Spanish pork industry has expressed willingness to cooperate with the Chinese investigation. However, Spanish Economy Minister Carlos Cuerpo urged the avoidance of trade countermeasures.
Spain's Minister for Agriculture, Luis Planas, highlighted the vulnerability of the agricultural industry to trade disputes, citing the US tariffs imposed on EU farming products in 2019. Planas expressed hope for negotiation to prevent escalation.
The ongoing trade tensions between China and the EU have raised concerns about a wider trade conflict. The investigation into European pork imports represents a further complication in a complex relationship.
