For every action there is an equal and opposite reaction. So here it is Chinaafter Europe imposed more duties on the import of Chinese electric carshas decided to react by launching an anti-dumping investigation into the import of carbon-based products from the European Union. pork. Formally, according to the Ministry of Commerce in Beijing, the initiative was created to respond to a request “presented by the China Animal Husbandry Association on behalf of the national pig industry”. That the tariff war let it begin.
China’s new tariffs on pork
The choice of China it did not appear to be random at all given that, less than a week ago, the European Commission had decided to impose limits provisional import duties from the Chinese electric cars (until the 38 percent) as their production enjoys strong state subsidies for the EU.
This led to the Red Dragon’s economic counteroffensive. According to what was published in recent days by the official English-language organ of the Beijing government, the Global TimesChina’s major industries were gathering evidence to ask the national government to launch aanti-dumping investigation on specifics dairy products And pork meat coming fromEU. Now the investigation has been launched, with the Chinese Ministry of Commerce announcing that Brussels has until July 6 (20 days) to present their opinions.
China’s pork investigation
As reported by a spokesperson for the Ministry of Commerce in Beijing, the investigation was conducted in China both the pork both fresh and frozen, including pork fat without lean part, offal, intestines, bladders and pork stomachs.
The investigation, which should be concluded within a year with a possible extension of a further six months, has as its object of investigation the import period of products between January 1st to December 31st last year (2023), while it extends to four years in reference to industrial damage caused to Chinese national industries (from January 1, 2020 to December 31, 2023).
Chinese industries, as claimed by the spokesperson of the Ministry of Commerce, “have the right to request the opening of investigations into subsidies and anti-dumping measures, which the competent authorities will examine in accordance with the law”.
The tariff war between China and the European Union
The start of theanti-dumping investigation in Beijing opens the glimmers of a new one tariff warwith that of pork which could only be the first move of a much broader and more dangerous strategy for those involved. Indicative, in this sense, is what was always stated at Global Times from Liu Binhead of the China Automotive Technology & Research Center, who specifically asked the Dragon government to strike hard import of large displacement European cars after the EU itself has effectively slowed down the Chinese electric car sector.
This would be a decidedly more serious scenario than the one currently affecting pork alone, with a greater impact on trade relations between the European Union and China. Today the tax on imports is equal to 15 percent, with Beijing which could choose to increase the percentage to 25 percent, thus affecting many European companies that have a crucial market in China, such as the Germans. Mercedes or BMW. It is no coincidence, in fact, that Germany has opposed the new European measures on Chinese imports, evidently fearing repercussions.
