China responds to tariffs on electric cars with investigation into EU pork

BEIJING – Targeting European farmers rather than German automakers, the Chinese government has launched an investigation into pork imports from the European Union, just days after the EU announced it would impose provisional tariffs on electric vehicles made in China.

The Commerce Department did not mention the tariffs on electric cars when it recently announced it would launch an anti-dumping investigation into pork from Europe. But the move is widely seen as a response to the EU’s push on electric cars and as a bargaining chip for China in any potential trade negotiations.

China could have imposed a 25 percent tariff on imports of gasoline vehicles with large engines under the pretext of climate change, a move that would have hit Mercedes and BMW hard. By deciding against it, at least for now, the government could be acknowledging the German auto industry’s public opposition to the EU tariffs, as well as its considerable production in China.

The Chinese market is an important market for German carmakers, and the head of the German automobile association VDA described the announcement of the EU tariffs on June 12 as a further step away from global cooperation. “The risk of a global trade conflict increases further as a result of this measure,” Hildegard Müller said in a statement.

The investigation into EU pork imports will cover a range of products, including fresh and frozen pork, intestines and other offal. According to the announcement, the investigation is expected to last for one year, with a possible extension of six months.

Olof Gill, trade spokesman for the European Commission, told journalists in Brussels that the EU’s agricultural subsidies were “strictly in line with our WTO commitments”. The Commission would follow the investigation very closely and intervene if necessary to ensure that the Chinese investigation complies with World Trade Organization rules.

Chinese officials have said the EU’s investigation into subsidies for electric vehicle production in China is “typical protectionist behavior” that flouts WTO rules. The EU plans to impose provisional tariffs of 17.4 to 38.1 percent on electric vehicles from China for four months from July 4. They would apply to vehicles exported to Europe by both Chinese and foreign brands, including Tesla.

A promoter at a booth for imported Spanish pork prepares for another day at the China International Import Expo in Shanghai, Nov. 6, 2018. The Chinese government is targeting European farmers rather than German automakers, launching an investigation into European Union pork imports just days after the EU announced it would impose provisional tariffs on Chinese-made electric vehicles. (AP Photo/Ng Han Guan)

A worker replenishes goods next to imported pork products from Spain at a supermarket in Beijing, Tuesday, June 18, 2024. The Chinese government is targeting European farmers rather than German automakers by launching an investigation into pork imports from the European Union, just days after the EU announced it would impose provisional tariffs on Chinese-made electric vehicles. (AP Photo/Ng Han Guan)