The European Commission is set to impose increased tariffs on China-made electric vehicles as of 5 July, prompting China to launch an “anti-dumping investigation” into imports of pork and pork by-products from the European Union. This move is seen as potential retaliation for the EU tariffs on China-made battery electric vehicles. The Commission’s decision to impose additional duties on these goods was based on evidence of Beijing’s heavy use of state aid to boost its BEV output. China has criticized the EU probe as a “protectionist act” and has vowed to defend the rights of Chinese companies through necessary measures.
The European Commission’s preliminary decision to impose additional duties ranging from 17.4% to 38.1% on China-made BEVs comes in response to suspicions of heavy subsidies and artificially low prices. The ongoing investigation into China’s BEV sector has heightened geopolitical tensions between the two trading partners, marking one of the most consequential trade disputes of its kind. Concerns over potential retaliation from China have been looming, with aviation and agriculture sectors being considered as likely targets. The EU is closely monitoring China’s investigation into EU pig meat imports, observing the similar timeframe to the EU’s probe into China-made BEVs.
China’s Ministry of Commerce has denounced the EU inquiry as a “naked protectionist act” and has pledged to defend the interests of Chinese companies through necessary measures. The Chinese investigation into EU pig meat imports covers the period from January 2020 to December 2023, mirroring the timeline of the EU probe into China-made BEVs. The EU is the largest exporter of pork and pork by-products, with the majority of exports going to East Asia, particularly China. The EU’s farmers association, COPA-COCEGA, has denied engaging in anti-dumping practices in the pig meat sector and expressed concern over potential repercussions for countries like Spain, the Netherlands, Denmark, Germany, and Belgium.
The EU Commission spokesperson emphasized that any subsidies provided in the EU agriculture sector are in line with WTO obligations, dismissing concerns that this could strengthen China’s case in the ongoing dispute. China’s response to the EU tariffs on China-made BEVs is anticipated to affect aviation and agriculture sectors, with the potential for tit-for-tat trade restrictions. The EU is coordinating closely with member states and industry stakeholders to ensure that the investigation into China’s anti-dumping practices complies with WTO rules. The escalating trade tensions between the EU and China highlight the growing importance of BEVs in the transition to a sustainable economy and the need for fair competition in the global market.
The upcoming tariffs on China-made electric vehicles signal the EU’s efforts to address unfair trade practices and level the playing field for European manufacturers. China’s response in launching an anti-dumping investigation into EU pig meat imports reflects the broader trade dispute between the two trading partners. The EU’s stance on defending its industries and ensuring compliance with international trade rules underscores the complexities of global trade relations in the context of rapidly expanding markets like electric vehicles. The outcome of these investigations and potential retaliatory measures will have implications for both the European and Chinese economies and will shape future trade dynamics between the two regions.
