China targets EU pork in tit-for-tat trade spat – Asia Times

After the union announced the addition of new taxes on Chinese energy cars, China has launched an anti-dumping investigation into meat imports from the European Union. &nbsp,

The research could ultimately lead to an increase in China’s levies on EU meat products, hitting Spain, the Netherlands, Denmark, Germany and France.

Already, China charges a 12 % tax on the EU’s beef imports. According to some analysts, many European exporters will experience the heat of the trade war if the levy is increased to 20 %. They claimed that meat manufacturers in the EU may not be able to make up for their loss in China, yet if they look into new markets like Vietnam and the Philippines.

China’s Ministry of Commerce said Monday that its research will focus on meat imported from the Union for human use, including fresh, dried, smoked, preserved, warm and freezing whole cuts, as well as animal intestines, stomach and vessels. It said the sensor will start immediately.

The China Animal Husbandry Association filed a complaint on June 6 on behalf of the home meat industry in China, according to the report.

It advised those whose alleged dumping actions should get in touch with the Ministry of Commerce’s Trade Remedy and Investigation Bureau to start the research. They were told to give their thoughts to the ministry within 20 days of Monday. &nbsp,

In 2023, China consumed a complete of 57.94 million tons of meat and pork by-products, compared to just 1.55 million lots imported.

About half of China’s meat exports came from Europe. From 2014 to 2020, China’s meat goods continued to grow. After the number peaked at 4.39 million plenty in 2020, it has declined steadily. It fell to 1.55 million lots next month. &nbsp,

Cailianpress.com, a Chinese economic news site, said meat imported from the EU only accounted for a small portion of China’s full meat usage, so a decline in source from the region will not have a big impact on pork prices in China. It said, on the contrary, many pig farms in the EU will suffer as they wo n’t be able to find new buyers for their pig internal organs, trotters, tails and ears, which are not generally used in European dishes. &nbsp,

In Chinese food, animal intestines, stomach and vessels often go into “dim amount” to be consumed in a pho. Ginger and vinegar are used to cook pork knuckles. Pig lungs, tails and ears are for making soups. &nbsp,

Chronology of retaliation

The Chinese government may launch an anti-dumping investigation into EU-sourced pork imports on May 26 according to the state-owned Global Times. Wang Wentao, the head of Chinese commerce, traveled to Spain on June 1st and claimed that the EU’s anti-subvention investigations into Chinese EVs and other products were carried out using fabricated pretexts like Chinese overcapacity and unfair competition.

However, Beijing’s warnings failed to stop the EU from imposing a 17.4- 38.1 % tariff on Chinese EVs on June 12.

Last year, Spain exported about 560, 000 tons of pork products worth 1.2 billion euros ( US$ 1.29 billion ) to China, according to Interporc, the country’s pork producers ‘ association. &nbsp,

Spain has called for trade talks since China launched an investigation into the EU’s pork imports. Luis Planas, the minister of agriculture in Spain, expressed his hope that negotiations will allow for the removal of tariffs on agricultural and food products. &nbsp,

Apart from Spain two other countries, the Netherlands and Denmark, will also be hit by China’s latest anti- dumping probe as they exported to China pork products worth US$ 620 million and US$ 550 million, respectively, in 2023.

The European Commission’s spokesperson stated that the EU is not concerned about China’s anti-dumping investigation and will act decisively to make sure that the investigation adheres to World Trade Organization regulations.

China’s pork supply

China’s pork prices have been declining since September 2020, according to an article in the Economic Daily that published earlier this year, with the exception of a slight increase between April and November 2022. &nbsp,

According to Li Pengcheng, an analyst at the Ministry of Agriculture and Rural Affairs, many pig farms were losing money as a result of the sector’s protracted downturn. &nbsp,

The decline in pork prices also suppressed China’s consumer price index, which increased only 0.2 % year- on- year in 2023, compared with the average 2 % growth in 2016- 2019.

Since April this year, China’s pork prices have regained growth momentum. On Monday, Sichuan Online, a state- owned news website, said many pig farmers in Sichuan province turned profits this month, meaning that the pork industry may have entered an up cycle. &nbsp,

Some commentators predicted that Beijing will have more bargaining chips in a trade negotiation with the bloc because of the rising pork demand in China, which is attractive to the EU. They added that if China needed more pork products, it might also think about bringing them from Brazil and Russia. &nbsp,

Read: China to retaliate if Europe raises EV tariffs&nbsp,

Read: Chinese EV firms can absorb EU tariffs: expert

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