China cuts anti-dumping duties for European pork exporters

A staff member prepares for the arrival of Chinese Vice Prime Minister Ding

Wang Zhao | Afp | Getty Images

China announced lower tariffs on pork imports and pork by-products from the European Union on Tuesday after completing a year-long anti-dumping investigation into European pork imports.

The new tariffs – which range from 4.9% to 19.8% for dozens of European pork exporters – will take effect from Wednesday and last for five years, according to China’s Commerce Ministry.

At the beginning of September, China imposed temporary anti-dumping duties of up to 62.4% in the form of cash deposits on pork imports from the EU.

Trade tensions had increased after Brussels imposed tariffs of up to 45% on electric vehicles imported from China in October last year, prompting Beijing to describe it as protectionist.

China launched the anti-dumping investigation in June last year as part of a countermeasure to the EU’s punitive measures against its electric vehicle sector.

S&P Global estimates that the EU is the world’s largest pork exporter, selling around 13% of its annual production abroad, with China the single largest buyer.

European leaders have highlighted Beijing’s growing trade imbalance with key trading partners including the EU, as tariff tensions with Washington prompted Chinese exporters to redirect their shipments to markets outside the US.

China’s trade surplus hit an annual record of more than $1 trillion in November.

Beijing’s restrictions on rare earth exports had also led to shortages of the critical minerals among several European manufacturers looking to diversify their supply chains from China. The agreement China reached with the US in late October has allayed some concerns as Beijing has reportedly started issuing licenses for such exports.

There have also been disputes between the EU and China over semiconductor exports after the Netherlands took control of Nexperia, a Chinese company based in the country. Last week, Beijing called on the Dutch government to send a delegation to China for further negotiations.