China’s Potential Investigations into EU Firms Following EV Tariffs – Reuters

By Mei Mei Chu

BEIJING (Reuters) – Chinese companies have formally requested that the government initiate an anti-dumping investigation into pork imports from the European Union, as well as an anti-subsidy investigation concerning EU dairy products, as reported by state media.

This action appears to be a response to new EU tariffs that can reach as high as 38.1% on imported Chinese electric vehicles, effective from July, heightening the potential for escalating trade tensions.

Below are some industries that may come under scrutiny from China.

PORK
Chinese firms have submitted an official request for an anti-dumping probe into pork imports from the EU, according to the state-backed publication, Global Times. While it’s not yet clear which specific pork products may be affected, analysts indicate that a significant portion of China’s pork imports from the EU—valued at over $3 billion last year—consists of offal.

DAIRY
Plans are underway for Chinese companies to seek an anti-subsidy investigation into certain EU dairy imports, as mentioned by Global Times. The specific products targeted in this investigation remain uncertain. However, whey powder, cream, and fresh milk ranked as the most significant items in the EU’s dairy exports to China last year, valued at approximately 1.7 billion euros.

CARS
Experts from a government-affiliated automotive research institution have suggested that China should raise its import tariffs on large gasoline-powered vehicles to 25%, up from the current 15%. This increased duty would primarily impact German manufacturers that export SUVs and sedans to the Chinese market.

BRANDY
Earlier this year, Beijing initiated an anti-dumping investigation into brandy imported from the EU, largely focusing on France, which is the predominant source of European brandy exported to China. This investigation will specifically target brandy in containers of less than 200 liters.

PLASTIC
In May, China commenced an anti-dumping investigation targeting POM copolymers, a type of engineering plastic, imported from the EU, the United States, Japan, and Taiwan.