The trade tensions between Europe and China have intensified with the opening of an anti-dumping investigation into imports of pork products. Pork exports are vital for many European Union countries, and the Chinese probe has raised concerns for farmers who heavily rely on exporting to China. The investigation will cover various products, including fresh and frozen pork meat, intestines, and other internal organs, and is expected to last for a year with a possible six-month extension. In parts of France, farmers depend on Chinese sales for a significant portion of their income, particularly through selling parts of the pig that are not commonly eaten elsewhere. Last year, France exported over 115,700 tonnes of pork to China, representing more than 16% of its total exports.
The retaliatory measures imposed by China on pork imports are seen as a tit-for-tat response to the European Union’s additional tariffs on Chinese electric car imports. Last week, the EU announced tariffs of up to 38% on Chinese electric car imports, prompting the Chinese Commerce Ministry to open the anti-dumping investigation into European pork now. China’s move gives them leverage in potential trade negotiations and demonstrates a willingness to retaliate against perceived unfair trade practices. It’s worth noting that China refrained from imposing duties on gasoline-powered vehicles with large engines that would have affected German auto manufacturers.
Tensions between the EU and China have escalated further, with German vice-chancellor Robert Habeck traveling to China as economic policy disputes intensify. EU exports of pork products to China surged to €7.4 billion in 2020 when China had to import to meet domestic demand after swine disease decimated its pig farms. However, these exports have since declined, reaching €2.5 billion last year, with Spain accounting for nearly half of that total. Amidst these trade tensions, there are calls to avoid an escalation of countermeasures through negotiation and collaboration with Chinese authorities. Spanish authorities and industry associations are willing to cooperate with Chinese officials to resolve the issues.
The European Commission has affirmed that EU farm subsidies comply with World Trade Organization rules and emphasized the importance of monitoring the Chinese investigation into pork imports closely. The Chinese probe into the subsidies for electric vehicle production in China has been criticized by Chinese officials as protectionist behavior that disregards WTO rules. The EU plans to impose provisional tariffs on electric vehicles from China for four months starting in July, affecting both Chinese and foreign brands. These developments highlight the delicate balance of trade relations between China and the EU and the potential consequences of escalating trade conflicts.
In conclusion, the trade tensions between Europe and China underscore the complex interplay of economic interests and policy disputes. The importance of pork exports for many EU countries, particularly France and Spain, is evident in the impact of the Chinese investigation on farmers and industries. As both sides navigate through these challenges, the need for dialogue, negotiation, and collaboration becomes essential to avoid further escalation of trade conflicts. The enforcement of trade rules and frameworks, such as those established by the WTO, will be crucial in ensuring a fair and balanced resolution to these disputes. Ultimately, the stakes are high for both the EU and China in maintaining stable and mutually beneficial trade relations.
