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

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

The investigation announced by China’s commerce ministry on Monday (Jun 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 began on Jun 17.

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

Following the European Commission’s Jun 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.

Spain is the top supplier of pork to China, and its pork producers group Interporc said they would fully cooperate with the investigation by Chinese authorities.

“The EU and China have plenty of time to reach agreements,” Interporc said in a statement.

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

China’s commerce ministry said that the investigation should be completed by Jun 17, 2025, but could be extended by another six months if required.

Lobby group Danish Agriculture & Food Council warned on Monday that the country’s pork sector would be “hit incredibly hard” by any restrictions on sales to China.

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Pork suppliers from South America, the United States and Russia could be among those gaining market share if Beijing restricts imports from the EU.

China’s state-backed Global Times newspaper first reported late last month that Chinese firms planned to ask 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 Jun 8 requesting officials look into European dairy imports.

Chinese authorities have previously hinted at possible retaliatory measures through state media commentaries and interviews with industry figures.

A spokesperson for the European Commission said that the bloc was not worried about China opening its investigation and told reporters that the EU would intervene appropriately to ensure the investigation complied with all relevant World Trade Organization rules.

The EU accounts for more than half the roughly US$6 billion worth of pork China imported in 2023, according to customs data, around a quarter of which was from Spain alone.

The Netherlands and Denmark, which rank second and third, last year exported to China pork products worth US$620 million and US$550 million respectively.

China’s commerce minister Wang Wentao earlier this month travelled to Spain to court officials ahead of the Commission announcing its decision on whether Chinese electric vehicle producers benefit from distortive state subsidies.

“It will not be the first time that a probe announced in one jurisdiction is responded to in kind, so in view of the EU electric vehicles probe, this is not a surprise,” Jens Eskelund, president of the European Union Chamber of Commerce in China, said.

“Free and open markets rely on rules-based trade practices,” he added.

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 development 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. REUTERS