China Cries Foul Over EU's Pork Pricing – Calls It a 'Ham-handed' Response to Tariff War

China Cries Foul Over EU's Pork Pricing – Calls It a 'Ham-handed' Response to Tariff War

3 minute read
Published: 6/17/2024

In a move that could turn your breakfast bacon into a battleground, China has launched an investigation into imports of pork from the European Union. This carnivorous conflict comes as a meaty response to the EU's plan to impose additional tariffs on Chinese electric cars (CNN).

The European Commission has announced new tariffs of up to 38% on battery electric cars imported from China, expected to take effect by July 4th. While Americans celebrate their independence with fireworks and hot dogs, the EU will be celebrating theirs with increased tariffs and, quite possibly, some awkward dinner conversations (CNN).

China's investigation follows a complaint from its pork producers, who apparently believe that European pigs have been getting an unfairly good price on their passage to Chinese dinner tables. One has to wonder if Chinese pigs have hired some top-notch lobbyists (Sky News).

The EU exported over €2.5 billion (around $2.7 billion) worth of pork and offal to China last year, with Spain being the most significant player, accounting for nearly half of this figure. It turns out that Spain doesn't just dominate in soccer; it also rules in the global pork Olympics (CNN).

Beijing's anti-dumping investigation is set to scrutinize if EU pork and pig by-products are entering China at prices that would make local producers squeal. The investigation is expected to reach a conclusion within a year but could drag on for an extra six months if required. This means we might not get a resolution until half the pigs involved could qualify for senior citizen discounts.

Aside from Spain, the major EU pork exporters to China include the Netherlands, Denmark, and France. Clearly, when these countries aren't busy making top-tier chocolate, building windmills, or weathering national strikes, they're out delivering prime cuts of pork to China's ever-hungry market (CNN).

Spain is undeniably the MVP, supplying a quarter of all Chinese pork imports and raking in a whopping $1.25 billion annually. That's enough money to buy a gazillion churros, but who's counting? (Sky News).

Now, while the EU is busy slapping new tariffs ranging from 17.4% to 38.1% on Chinese electric vehicles, in addition to an existing 10% duty, Beijing is crying foul, claiming that these tariffs could seriously hurt its electric vehicle export ambitions. The horror of seeing Beijing's polished EV dreams meet a pothole called tariffs is palpable.

In this intercontinental culinary dispute, Russia and South America could emerge as the proverbial kids running off with the candy. Both regions might gain a substantial piece of the Chinese pork market if these pork tariffs go live. The Kremlin must be salivating over the potential boost to its own pork industry, while South America's biggest problem might become figuring out how to say "this little piggy goes to China" in Portuguese.

Not content with pork alone, Brussels is also investigating China’s state support for wind turbine companies and solar panel suppliers. There's a joke somewhere about Brussels sprouts meddling in the renewable energy field, but this isn't a vegetable story.

As the world watches this savory squabble unfold, one thing is certain: Trade wars aren't as fun as they sound, even when they involve bacon. So, stock up on your favorite breakfast meats while you can, because this tariff tiff between China and the EU might just turn your next brunch into a luxury affair.

References

  • Sky News. (2024, June 17). China targets EU pork as threat of trade war escalates.
  • CNN. (2024, June 17). China probes European pork prices after EU hikes tariffs on its electric cars.