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China opens tit-for-tat anti-dumping probe into European pork

China opens tit-for-tat anti-dumping probe into European pork
The probe will begin on June 17.
PHOTO: Pixabay

BEIJING - China has opened an anti-dumping investigation into imported pork and its by-products from the European Union, a step that appears mainly targeted at Spain, the Netherlands, France and Denmark, in response to curbs on its electric vehicle exports.

The investigation announced by China’s Commerce Ministry on June 17 will focus on pork intended for human consumption, such as fresh, cold and frozen whole cuts, as well as pig intestines, bladders and stomachs. The probe will begin on June 17.

It was prompted by a complaint submitted by the China Animal Husbandry Association on June 6 on behalf of the domestic pork industry, the ministry said.

Following the European Commission’s June 12 announcement that it would impose anti-subsidy duties of up to 38.1 per cent on imported Chinese cars from July, global food companies have been on high alert for retaliatory tariffs from China, owing to reports in the country’s state media.

The state-backed Global Times newspaper first reported late in May that Chinese firms planned to ask the authorities to open an anti-dumping investigation into some European pork products, citing an unidentified “business insider”.

That was followed by a second report in the same outlet on June 8 requesting officials probe European dairy imports.

The Chinese authorities have previously dropped hints about possible retaliatory measures through state media commentaries and interviews with industry figures.

China imported US$6 billion (S$8 billion) worth of pork in 2023, including offal, with the EU accounting for more than half, according to customs data.

Spain accounted for US$1.5 billion worth of outbound swine shipments from the bloc, almost three times as much as second- and third-ranking the Netherlands and Denmark, which exported US$620 million and US$550 million of pork products respectively.

Growing alarm over Chinese industrial overcapacity flooding the EU with cheap products, including EVs, is opening a new front in the West’s trade war with Beijing, which began with Washington’s import tariffs in 2018.

EU trade policy is turning increasingly protective against the global ramifications of China’s production-focused, debt-driven debt model.

Governments typically place anti-dumping duties on imported goods when they suspect the item in question is being sold for less than it cost to produce in order to protect domestic firms.

European pork producers should be able to keep exporting to China tariff-free while the investigation is under way, pending a decision and a tariff announcement by the Chinese side.

The Commerce Ministry said that the investigation should be completed by June 17, 2025, but could be extended by another six months if required.

ALSO READ: Vietnam to let companies import gold for first time in years, industry official says

Source: Reuters

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