Recently, China has initiated an anti-dumping investigation into imported pork and its by-products from the European Union. This move is believed to be targeted towards countries such as Spain, the Netherlands, and Denmark, in response to restrictions on its electric vehicle exports. The investigation, announced by China’s commerce ministry, will specifically focus on various pork products intended for human consumption, including fresh, cold, and frozen whole cuts, as well as pig intestines, bladders, and stomachs.
Potential Implications for European Pork Producers
With the EU accounting for more than half of the roughly $6 billion worth of pork imported by China in 2023, this anti-dumping investigation could have significant implications for European pork producers. Spain, as one of the major exporters of pork to China, has called for negotiations to avoid tariffs on its pork exports. Meanwhile, the Netherlands and Denmark, ranking second and third in terms of pork exports to China, could also be impacted by this investigation.
The move by China to investigate European pork imports comes in the midst of escalating trade tensions between China and the EU, particularly in light of the European Commission’s decision to impose anti-subsidy duties on imported Chinese cars. This tit-for-tat approach to trade disputes raises concerns about the future of global trade dynamics and the potential for retaliatory measures from both sides.
The current trade environment between China and the EU is becoming increasingly challenging, with growing alarm over Chinese industrial overcapacity flooding the EU market with cheap products. This has led to the EU adopting a more protective stance in its trade policy, particularly in response to the production-focused, debt-driven development model employed by China. The imposition of anti-dumping duties is one way for governments to protect domestic industries from unfair competition.
China’s anti-dumping investigation into European pork imports has the potential to disrupt the pork trade relationship between China and the EU. European pork producers are likely to face challenges in exporting to China while the investigation is underway, pending a decision on tariffs by the Chinese authorities. The outcome of this investigation will not only impact the pork industry but also reflect the broader trade dynamics between China and the EU.