China and the European Union (EU) are locked in a trade dispute, with each side imposing tariffs on the other's exports. The latest round of tensions began when the EU announced tariffs on electric vehicles imported from China. In response, China launched an anti-dumping investigation into pork imports from the EU.
The Chinese Ministry of Commerce initiated the investigation at the request of the China Animal Agriculture Association. The association accused European pork producers of creating overcapacity and receiving large subsidies, which has impacted China's domestic pork industry.
The EU is a significant exporter of pork to China, with almost half of its exports coming from Spain in 2021. Other major EU exporters include the Netherlands, Denmark, and France.
The investigation is expected to take one year with a possible six-month extension. The European Commission has stated that it will follow the proceedings closely and intervene as appropriate to ensure that the Chinese probe complies with World Trade Organization rules.
This latest trade dispute adds to growing tensions between China and the EU, which have been simmering for some time over issues such as human rights, technology transfers, and intellectual property.
The EU's tariffs on Chinese electric vehicles are part of a broader effort to protect its domestic auto industry from Chinese competition. The move has been criticized by some in the industry who argue that it could harm European consumers and businesses that rely on imports from China.
China, for its part, has threatened to retaliate with tariffs on EU exports beyond pork. The list of potential targets includes luxury goods and wine.
The trade dispute highlights the challenges of balancing economic interests with geopolitical tensions in an increasingly interconnected global economy.
Sources:
- China launches anti-dumping probe into imported EU pork as trade tensions grow (CNBC)
- China targets Europe's farmers, and not its automakers, in response to EU tariffs on electric cars (AP)
- China opens investigation into European Union pork imports after E.U. imposes tariffs on Chinese electric cars (Al Jazeera)
- Facing E.U. Tariffs, China Threatens Pork Imports From Europe (The New York Times)
