Earlier in June, the European Union (EU) announced a tariff hike on Chinese electric vehicles (EVs), prompting Beijing to warn of potential retaliatory measures. Now, in what has been seen as part of that response, Chinese officials launched an investigation into the prices of pork imported from Europe.
The investigation is a move that could have significant economic repercussions for the EU, given China’s immense demand for pork.
China is the world’s largest consumer of pork. The country expects to account for more than half of global consumption this year. In some Chinese provinces, the average person consumes a quarter pound of pork daily, contributing to the nearly 2 million pigs consumed nationwide each day.
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Last year, China spent approximately $6 billion on pork imports. More than 50% of that pork came from the EU.
The EU’s executive branch, the European Commission, stated it will closely monitor China’s investigation and intervene if necessary, downplaying concerns about significant impacts on European farmers. However, China might not be done hitting back at Europe and other nations that have similarly increased electric vehicle tariffs against them.
U.S. Treasury Secretary Janet Yellen said Washington, D.C., is bracing for retaliation over the Biden administration’s own duty hike on Chinese EVs. Meanwhile, market analysts suggested Beijing could also impose tariffs on other European exports, such as wines and brandy, which have been lucrative markets for Europe.
Last year, nearly 70% of Chinese wine imports came from the EU, and China is the second-largest importer of brandy after the United States.
