By Mei Mei Chu and Joe Cash
BEIJING (Reuters) -China may impose preliminary anti-dumping duties on pork imports from the European Union as part of a year-long investigation that began on June 17, the Commerce Ministry said on Thursday.
China has opened an investigation into EU pork and its by-products, a move that appears to mainly target Spain, the Netherlands and Denmark, after the bloc imposed anti-subsidy duties on Chinese-made electric vehicles.
The research will focus on pork intended for human consumption, such as fresh, cold and frozen whole pieces, but also on pig intestines, bladders and stomachs.
It is expected to be completed by June 17, 2025, but could be extended for another six months if necessary.
“If after preliminary investigation, it is found that dumping has been established and has caused injury to the domestic industry, provisional anti-dumping measures may be imposed,” said He Yadong, spokesman for the Ministry of Commerce, in response to reporters’ question about the impact of the dumping. ask questions.
Global food companies have been on high alert for retaliatory tariffs from China since the European Commission announced on June 12 that it would impose anti-subsidy duties of up to 38.1% on imported Chinese cars from July.
China imported $6 billion worth of pork, including offal, in 2023, and more than half of that came from the EU, according to Chinese customs data.
Spain is the EU’s largest pork supplier to China, followed by the Netherlands, Denmark and France.
The measures could have serious consequences for Europe because a large part of the bloc’s pork shipments to China consists of pig ears, noses, feet and offal, which are rarely consumed by Europeans.
The Spanish pork sector is ready to focus on other markets again, says Alberto Herranz, director of the Spanish pork producers association Interporc.
Spanish Economy Minister Carlos Cuerpo told Reuters that a balance had to be struck between promoting free trade and protecting strategic interests.
“Just as we don’t want a trade war, we want to avoid a subsidy race. We have to be able to find a point where we compete, but fairly,” he said.
China’s Ministry of Commerce said the investigation was prompted by a complaint from the China Animal Husbandry Association on behalf of the domestic pork industry.
Traders and analysts have said Beijing could turn to pork suppliers in Russia, which in February began exporting pork to China, as well as Brazil, Argentina and the US, to replace European supplies.
“China’s domestic pig production capacity is sufficient and even if there are some gaps, it will be quickly replenished with local supply,” said an executive of a major Chinese pig farm.
The world’s largest pork producer and consumer is also facing an oversupply of pigs, which has weighed on domestic pork prices. Imports account for about 5% of China’s total pork supply.
Governments typically impose anti-dumping duties on imported goods to protect domestic businesses when they suspect that the goods in question are being sold for less than their cost of production.
