China launches anti-dumping investigation into European pork

China has launched an anti-dumping investigation into imported pork and its byproducts from the European Union, a move that appears to primarily target Spain, the Netherlands and Denmark as the country responds to restrictions on the export of electric vehicles.

The investigation, announced by China’s Commerce Ministry on Monday, 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 investigation will begin on June 17.

The trigger was a complaint filed by the Chinese Animal Breeding Association on June 6 on behalf of the Chinese pork industry, the ministry said.

Following the European Commission’s announcement on June 12 that it would impose anti-subsidy tariffs of up to 38.1 percent on imported Chinese cars starting in July, global food companies are on high alert for retaliatory tariffs from China.

The state-backed newspaper Global Times first reported late last month, citing an unnamed “business insider,” that Chinese companies wanted to ask the authorities to initiate an anti-dumping investigation against certain European pork products.

On 8 June, a second report appeared in the same newspaper, calling on the authorities to investigate European milk imports more closely.

The Chinese authorities have previously hinted at possible retaliatory measures in comments in state media and in interviews with industry representatives.

A European Commission spokesman said the bloc was not concerned about China opening an investigation and told reporters the EU would intervene appropriately to ensure the investigation complies with all relevant World Trade Organization rules.

However, Spain called for negotiations to avoid tariffs on its pork exports to China.

More than half of China’s pork imports, worth around $6 billion in 2023, came from the EU, according to customs data, around a quarter of them from Spain alone.

In second and third place are the Netherlands and Denmark, which exported pork products worth 620 and 550 million US dollars to China last year, respectively.

China’s Commerce Minister Wang Wentao travelled to Spain earlier this month to talk to officials before the Commission announces its decision on whether Chinese electric vehicle makers benefit from anti-competitive state subsidies.

“It would not be the first time that an investigation announced in a jurisdiction would be responded to in kind. So, given the EU investigation into electric vehicles, this is no surprise,” said Jens Eskelund, President of the European Union Chamber of Commerce in China.

“Free and open markets are based on rules-based trading practices,” he added.

Growing concerns about Chinese industrial overcapacity, which is flooding the EU with cheap products – including electric cars – is opening a new front in the West’s trade war with Beijing, which began in 2018 with Washington’s import tariffs.

The EU’s trade policy is increasingly aimed at protecting against the global impact of China’s production-oriented, debt-driven development model.

To protect domestic companies, governments typically impose anti-dumping duties on imported goods when they suspect that the item in question is being sold below its cost of production.

While the investigation is ongoing, European pork producers should be able to continue exporting to China duty-free until the Chinese side has made a decision and announced tariffs.

The Commerce Department said the investigation should be completed by June 17, 2025, but could be extended for another six months if necessary.