China Launches Investigation into EU Pork Imports in Retaliation for Tariffs on Electric Cars
The Chinese government has announced that it will be launching an investigation into imports of pork for human consumption from the European Union (EU). This move is seen as a retaliatory measure in response to the EU’s decision to impose additional tariffs on Chinese electric cars.
The investigation, launched by China’s Commerce ministry on Monday, was initiated after a complaint was made by Chinese pork producers earlier this month. This comes less than a week after the European Commission announced its plan to impose tariffs of up to 38% on battery electric cars imported from China by 4 July, unless a solution can be reached.
The proposed penalties have been met with opposition from Europe’s car industry, as the commission believes that Chinese state support for manufacturers is giving them an unfair advantage and pricing out European competitors.
By targeting pork instead of taking tit-for-tat measures on EU-made electric vehicles, China is avoiding any potential harm to its own car brands’ operations in Europe. Spain, the Netherlands, Denmark, and France are among the top suppliers of pork-related goods to China, with Russia and South America being the main beneficiaries of any resulting tariffs on EU pork.
Spain is currently the top supplier of pork to China, accounting for a quarter of all imports at a value of $1.25 billion annually, according to Chinese customs data. In response to the investigation, Spanish pork producers group Interporc has stated that they will fully cooperate with Chinese authorities and that there is still time for the EU and China to reach an agreement.
Meanwhile, the Danish pork producers group has warned that any restrictions on sales to China would have a significant impact on their industry. They stated, “Producers would be hit incredibly hard” and urged for a resolution to be reached between the EU and China.
In other news, the latest updates on the business front include fuel prices remaining high amidst the distraction of the UK election, UK house prices staying at a record high with a steady market, and a campaigner for the Post Office receiving a knighthood.
