Beijing has launched an investigation into European Union pork prices, targeting a major food export from the EU, just days after Brussels Increased tariffs on electric vehicles from China.
The measure threatens to escalate tension in one of the world’s largest trading relationships and will increase fears among EU exporters that Beijing could go after their goods in retaliation against interim EV tariffs.
China’s Ministry of Commerce said on Monday that local agricultural producers had requested a permit anti-dumping investigation into EU pork and pig by-products and that a preliminary inspection had found sufficient grounds for a formal investigation into whether their prices are artificially low.
It added that the investigation should be completed within a year but could be extended by six months if necessary.
An increase in import tariffs could be very costly for European pork producers if it ultimately hurts demand in China, the world’s largest pork market and the main destination for EU pork exports. The EU is the second largest pork producer after China.
The bloc exported more than €2.5 billion worth of pork, including offal, to China last year, according to EU customs data. Almost half of this came from Spain, while the Netherlands, Denmark and France also exported significant quantities.
Beijing has already launched an anti-dumping investigation brandy imported from the EU and could impose tariffs that would hit French cognac producers. China could also focus on European wine and luxury goods, according to analysts at think tank Rhodium Group.
Olof Gill, a spokesman for the European Commission, the EU’s executive branch, told reporters on Monday that the EU would monitor the investigation into pork products “very closely” and would “intervene if necessary” to ensure the investigation complies with the rules of the world. Trade organization.
In response to a question about the EU’s significant agricultural subsidies, Gill added that the bloc was “not the least concerned” that the WTO could swing in China’s favor. “All subsidies… are strictly in accordance with our WTO obligations,” he said.
Beijing was widely expected to take targeted measures to stop EU officials from permanently imposing higher tariffs on electric cars imported from China, a decision the EU must make by November. The provisional rates will come into effect on July 4.
The European Commission announced last week that additional tariffs of between 17.4% and 38.1% would be applied to electric vehicles produced in China, on top of the existing 10% EU levy. This means that the highest overall percentage is almost 50%.
Beijing immediately denounced the move, which could hurt its ambitions to grow electric vehicle exports and is likely to accelerate efforts by Chinese carmakers to set up factories in Europe.
Brussels is also investigating Chinese state aid wind turbine companies And solar panel suppliers amid concerns that the country’s industrial overcapacity is flooding markets elsewhere cheap exports.
Xiaofei Xu and Maisie Linford contributed reporting.
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