China-EU Photo: VCG

China's Ministry of Commerce (MOFCOM) on Monday announced that at the request of the Chinese domestic industry,MK sport it will launch an anti-dumping investigation into certain pork and pig by-products originating from the EU, stressing that the move is in line with relevant Chinese laws and regulations as well as WTO rules.

Notably, the announcement came just days after the European Commission (EC), the executive body of the EU, announced last week that it would impose additional tariffs of up to 38.1 percent on electric vehicles (EVs) imported from China starting in July, though MOFCOM did not mention the EC's announcement.  

In a notice on Monday, MOFCOM said that the China Animal Agriculture Association on June 6, on behalf of the Chinese pork and pig by-products industry, submitted an application for an anti-dumping investigation into certain pork and pig by-products originating from the EU. After a review of the application, MOFCOM determined that it meets the requirements for launching an investigation in accordance with the relevant laws. 

The investigation starts on Monday and will be completed by June 17, 2025. The duration could be extended by six months in special circumstances, according to MOFCOM. 

An official with the Trade Remedy and Investigation Bureau of MOFCOM said that the investigation was launched after the domestic industry filed an application. The investigation authorities reviewed the application in accordance with relevant Chinese laws and regulations and in compliance with WTO rules, and deemed that it met the conditions for launching an anti-dumping investigation.

"The investigation authorities will conduct the investigation in accordance with the law, fully protect the rights of all stakeholders, and make objective and fair rulings based on the investigation results," the official said.

The announcement of the probe came just days after the EC announced that it would impose additional provisional tariffs of between 17.4 percent and 38.1 percent on EVs from China, which prompted harsh criticism from Chinese officials as well as industry and business groups. Chinese officials have repeatedly vowed to take all necessary measures to defend the legitimate rights and interests of Chinese companies.

The move also followed an exclusive report in the Global Times on May 25, in which a business insider said that relevant Chinese industries were gathering evidence, as they were planning to apply to competent authorities to launch an anti-dumping investigation into imports of certain pork from the EU. On Thursday, a business insider told the Global Times that relevant Chinese industries had formally filed an application for an anti-dumping investigation into certain EU pork products. 

The investigation could have major implications for the EU meat industry. In 2023, China imported $6 billion of pork, more than half of which came from the EU, Reuters reported on Friday. Spain and France are among the EU's top exporters of pork to China. In 2023, Spain exported 6.04 billion yuan ($832.4 million) worth of pork to China, the Netherlands' pork exports totaled 1.86 billion yuan and France's exports reached 1.07 billion yuan, according to the General Administration of Customs.

Stark contrast

While MOFCOM did not mention the EC's recent announcement in the notice, some Western media reports on Monday suggested that the Chinese probe was a "tit-for-tat" move against the EC's move. However, Chinese experts highlighted the stark contrast between the Chinese probe, which was launched at the request of the domestic industry in line with WTO rules, and the EC's move was launched without an application from relevant industries in the EU, and the investigation process was unfair, unobjective and in potential violation of WTO rules. 

Cui Hongjian, a professor with the Academy of Regional and Global Governance with the Beijing Foreign Studies University, said that starting in 2023, there has been a significant uptick in the EU's exports of certain pork and pig by-products to China, which warrants an investigation into its pricing factors in compliance with WTO rules. 

"As for the EC's investigation, there was no application from the EU industry, and the EC took the initiative. This actually shows that the EC is increasingly viewing economic and trade issues through a so-called security and political lens, which is completely different from a reaction based on market conditions," Cui told the Global Times on Monday, noting that such a shift toward geopolitics has jeopardized normal economic and trade cooperation between China and the EU.

Chinese experts said that if the EC moves ahead by collecting additional tariffs on Chinese EVs, China will take countermeasures to defend its rights and interests. While the EC announced the additional tariff rates on June 12, it will not start collecting the tariffs until July 4, which appears to have left some room for "discussions with Chinese authorities." 

"There will be countermeasures against the EC's move, as Chinese officials have repeatedly vowed to take all necessary measures to safeguard the legitimate rights and interests of Chinese companies," Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Monday. 

Bai said that China and the EU could resolve trade disputes through dialogue and consultations, but "the EC has destroyed the atmosphere of cooperation" with its illegal, protectionist move against Chinese EVs. 

In addition to the anti-dumping investigation into certain EU pork and pig by-products, the Global Times has also learned from a business insider that relevant Chinese industries are preparing evidence, as they plan to apply to competent authorities to launch an anti-subsidy investigation into imports of certain dairy products from the EU.

Moreover, China is internally moving ahead with a procedure to raise the temporary tariff rate on imported cars with large-displacement engines, Yuyuantantian, a social media account affiliated with China Media Group, reported last week. A Chinese auto industry insider previously told the Global Times that China should consider raising the temporary tariff rate on imported cars with engines larger than 2.5 liters - a move that could have a major impact on imported vehicles from the EU.

Cui said that China's countermeasures will focus on sending the EU the signal that if it chooses the path of a trade war, it will be lose-lose for both sides.