What do EVs have to do with the price of pork in China? Actually, a lot.

[JACK AYLMER]

WHAT DO ELECTRIC VEHICLES HAVE TO DO WITH THE PRICE OF PORK IN CHINA?

WELL, MORE THAN YOU’D THINK.

AFTER THE EUROPEAN UNION ANNOUNCED A TARIFF HIKE ON CHINESE EVS EARLIER THIS MONTH, BEIJING WARNED IT WOULD RETALIATE.

SO NOW IN WHAT HAS BEEN SEEN AS PART OF THEIR ATTEMPT TO GET EVEN, CHINESE OFFICIALS ARE GOING AFTER EUROPE’S PORK MARKET.

LAUNCHING AN INVESTIGATION INTO PRICES OF THE MEAT COMING FROM THE CONTINENT.

AND IT COULD ACTUALLY BE A BIG ECONOMIC BLOW TO THE EU.

THAT’S BECAUSE NO COUNTRY IN THE WORLD EATS MORE PORK THAN CHINA.

IN TOTAL, THEY’RE EXPECTED TO ACCOUNT FOR MORE THAN HALF OF GLOBAL PORK CONSUMPTION THIS YEAR.

THE AVERAGE PERSON IN SOME CHINESE PROVINCES EAT A QUARTER POUND OF PORK EVERY DAY-

CONTRIBUTING TO THE NEARLY 2 MILLION PIGS CONSUMED BY THE NATION ON A DAILY BASIS.

WITH SUCH HIGH DOMESTIC DEMAND, CHINA SPENT ABOUT SIX BILLION DOLLARS ON PORK IMPORTS LAST YEAR-

MORE THAN 50 PERCENT OF WHICH CAME FROM THE EUROPEAN UNION.

THE EU’S EXECUTIVE BRANCH SAID IT WILL BE FOLLOWING THE INVESTIGATION CLOSELY AND INTERVENE WHEN APPROPRIATE-

DOWNPLAYING FEARS THE PROBE WILL HAVE MUCH OF AN IMPACT ON EUROPE’S FARMERS. 

BUT, CHINA MIGHT NOT BE DONE HITTING BACK OVER THOSE HIGHER ELECTRIC VEHICLE TARIFFS.

U-S TREASURY SECRETARY JANET YELLEN HAS SAID WASHINGTON IS BRACING FOR RETALIATION FOR OUR OWN TARIFFS ON CHINESE E-VS. 

MARKET ANALYSTS BELIEVE BEIJING COULD NEXT IMPOSE TARIFFS ON EUROPEAN WINES AND BRANDY-

TWO OTHER PRODUCTS THAT EUROPE HAS MADE A LOT OF MONEY SELLING TO CHINA IN THE PAST.

LAST YEAR NEARLY 70 PERCENT OF CHINESE WINE IMPORTS CAME FROM THE EU-

AND ONLY THE U.S. IMPORTS MORE BRANDY THAN CHINA.

TO LEARN MORE ABOUT HOW THE ELECTRIC VEHICLE TRANSITION HAS INFLUENCED GEOPOLITICAL TENSIONS AROUND THE GLOBE, DOWNLOAD THE STRAIGHT ARROW NEWS AND SIGN UP FOR ALERTS FROM ME – JACK AYLMER – SO I CAN KEEP YOU INFORMED.