China declares war on European meat, here’s why

China Retaliates Against Electric Car Tariffs and Targets European Meat

According to Beijing’s statements, the trade war between the dragon and the old continent has taken a new turn, with threats against the export of pork-based food products involving some major economies in the EU.

The Chinese Ministry of Commerce announced on Monday, June 17th, that it had launched an anti-dumping investigation into imports of pork and its by-products from the Union.
The investigation is expected to conclude within a year but could be extended for another six months.

China’s accusation is based on the argument that the EU’s swine industry has created excess capacity and benefited from substantial subsidies, which have had a negative impact on the domestic Chinese pork industry.

Strategic Move or Political Pressure?

The move echoes similar accusations made by Western officials and industries against Chinese electric vehicles and solar exports.
By initiating this pork war, following a previous retaliatory action against brandy, Beijing aims to exert pressure on individual European governments to compel the European Commission to lift tariffs on electric vehicles before they are confirmed by July 4th.

EU Response and Potential Implications

The European Union seems unfazed by China’s investigation, according to official statements, ensuring that the probe complies with all relevant World Trade Organization rules.

EU’s data shows that it accounted for over half of the approximately $6 billion worth of pork imported by China in 2023, with about a quarter coming from Spain alone.
Following Spain, the Netherlands and Denmark were the second and third largest exporters to China, with exports valued at $620 million and $550 million, respectively.

Despite reassurances from Brussels, concerns linger among producers and industry representatives.
They fear that the escalating retaliations could impact the already weakened European agricultural sector, amidst discontent and protests across Europe.

Industry Concerns and Future Scenarios

Patrick Pagani, Deputy Director-General of Copa Cogeca, the EU’s agricultural industry body, expressed concern over farmers being caught in the crossfire of trade disputes.
While effective dumping practices in the EU’s pork sector are denied, participation in the investigation is deemed necessary, albeit costly, potentially leading to market losses in China.

Spain has pledged full cooperation with Chinese authorities in the investigations, being a primary target.
Meanwhile, the Danish Agriculture and Food Council has warned that the country’s pork industry would be severely affected by any sales restrictions in China.

In the ongoing trade war between China and Europe on pork, there might be other winners.
Pork suppliers from South America, the United States, and Russia could gain market share if Beijing limits imports from the European Union.