June 28, 2024, 1:41 a.m.

China

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China has announced an anti-dumping investigation into pork imports from the European Union

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Beijing/Brussels/Madrid - After the European Union announced tariffs on Chinese electric vehicles, Chinese officials on Monday (June 17) announced an anti-dumping investigation into imports of pork and pig by-products originating in the European Union. The EU said it was not concerned and would take appropriate measures to ensure the investigation complies with the relevant World Trade Organization rules.

China's Ministry of Commerce official website announced Monday that the ministry received on June 6 the China Animal Husbandry Association on behalf of China's domestic pork and pig by-product industry formally submitted an anti-dumping investigation application, according to the evidence provided by the applicant and the preliminary review of the Ministry of Commerce, decided that the same day on the import of pork and pig by-products originating in the European Union anti-dumping investigation.

The products under investigation will focus on fresh, cold, frozen, dry, smoked pork and edible chop suey for human consumption, the statement said. Pig intestines, bladder and stomach, etc.

China's Ministry of Commerce said the investigation should normally be concluded by June 17, 2025, with an extension of six months under special circumstances.

China has warned that it will take all necessary measures to resolutely safeguard its legitimate rights and interests after the European Union announced on Wednesday that it would impose punitive tariffs of up to 38.1% on electric vehicles imported from China. Since then, global food companies have been on high alert for possible retaliatory tariffs from China.

China is the EU's largest overseas market for pork. According to Reuters, China imported $6 billion of pork products, including offal, last year, more than half of which came from EU countries.

These pork products include pig ears, pig noses and pig feet, which are not favored in Europe, and it is unknown whether EU countries can find alternative markets for these pork products in the future, and the termination of pork products orders will lead to huge losses for the European meat industry.

In response to China's latest action, an EU spokesman said Monday that the bloc is not concerned about anti-dumping investigations and will intervene as appropriate to ensure that China's investigations comply with all relevant WTO rules.

China's pork imports from the EU mainly come from Spain, Denmark and the Netherlands, with Spain being China's largest pork supplier last year, accounting for 21% of China's total pork imports.

Spain exported more than 560,000 tonnes of pork products to China last year, worth €1.2bn, or 20.3 per cent of its total pork exports, according to Interporc, the Spanish white pig production and processing union.

Spanish Agriculture Minister Luis Planas said he hoped and expected there would be room for understanding and negotiations between the EU and China to avoid tariffs on agricultural products and food. He noted that China said the anti-dumping investigation could last more than a year and that China was not expected to take immediate measures.

Some analysts believe that South America and Russia could benefit if China seeks alternative supplies of pork, especially Brazil, which has been expanding its export capacity in the past few years.

The latest battle between China and Europe over trade will continue. In addition to pork products, China's state-run Global Times newspaper has previously suggested that China could launch an anti-subsidy investigation into dairy imports from the EU. In addition, the Ministry of Commerce of China launched an anti-dumping investigation on imports of related cognac originating in the European Union at the beginning of this year, and the preliminary results are expected to be announced before the end of August.

German Vice Chancellor and Economy Minister Robert Habeck will visit South Korea and China for five days from Wednesday (19), after the European Union announced punitive tariffs on Chinese electric vehicles, the German government vowed to seek an "amicable solution", which is expected to be one of the topics he discussed in China.

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