China’s decision to investigate pork imports from the European Union is the latest step in a growing trade dispute between the EU and its main trading partner, and any anti-dumping duties would carry a blow to the EU’s pig sector, several analysts said.
China’s position as the world’s largest pork consumer has fueled substantial imports from the EU. Data from the General Administration of Customs (AGD) showed that China imported nearly 1.34 million tonnes of pork and pork by-products from the EU last year.
The EU has become a major source of pork and related by-product imports for China, and more than half of China’s imports in this category came from the EU between 2020 and 2023.
The Chinese investigation comes in response to a request submitted by the China Animal Agriculture Association, a Chinese trade group, on behalf of domestic producers, the Ministry of Commerce (MOFCOM) said in a statement on Monday.
In its petition, the association raises concerns about the EU pig farming sector, alleging that substantial subsidies and support measures have allowed it to maintain a competitive advantage with low production costs.
Citing the EU’s medium-term budget for the period 2023-2027, in which 194 billion euros in agricultural subsidies were allocated through direct payments to member states, the association highlighted that around 82% of these subsidies could end up in the hands of high-emission livestock operations.
The impact on EU exports will take time to be felt, as MOFCOM has indicated that the investigation could last more than a year, focusing on pork intended for human consumption, such as fresh, cold and frozen whole cuts, as well as pork intestines, bladders and stomachs.
“The potential inability to export pork offal, for which demand in Europe is limited due to dietary preferences, could lead to increased pressure on sales and potentially impact pork prices within the EU , further affecting the EU livestock sector,” notes Shi Teng, an agricultural sector analyst for China Merchants Securities.
However, China’s self-sufficiency in pork production and limited dependence on imports will ensure a secure supply chain and stable prices in the Chinese market, mitigating the potential consequences of reduced imports, he said.
China reached cumulative pork production of 57.94 million tonnes in 2023. At the same time, its pork imports remained minimal, down almost 12% from 2022 levels, data shows official.
Before the investigation into pork products, Beijing had already launched an anti-dumping investigation in May into imports of a key technical chemical from the EU, as well as another in January into brandy imported from the EU.
