The Ministry of Commerce accuses the EU of constantly provoking trade disputes that may trigger a "trade war"

Our reporter Suo Hanxue reports from Beijing

"The ultra-low pork prices in the EU have had an impact on domestic farming enterprises." A person from the pork branch of the China Animal Husbandry Association told the reporter of China Business News, "After the anti-dumping investigation was launched, it was helpful to domestic pork prices." ”

Recently, the Ministry of Commerce released important information at a press conference that at the request of the Chinese industry, China will launch an anti-dumping investigation on pork and pig by-products imported from the EU.

The reporter learned at the press conference that the European Commission in the anti-subsidy investigation of China's electric vehicles, forced to ask for a large amount of information on the production and operation development plan, technical process, product formula and other aspects of China's electric vehicle lithium battery enterprises.

Subsequently, the spokesperson of the Ministry of Commerce said: "I want to emphasize that China does not want to see the current trade friction between China and the EU. Adhering to the spirit of consensus between the leaders of the two sides, China has continuously clarified China's position to EU institutions and member states through meetings, talks, phone calls and letters in bilateral meetings, the 13th WTO Ministerial Conference (MC13) and other multilateral and bilateral occasions, demonstrating an open and cooperative attitude, and clearly calling for a proper resolution of issues through dialogue and consultation. China has always abided by WTO rules and prudently refrained from using trade remedy measures. ”

"It is regrettable that the European side continues to provoke trade disputes," he said. ”

The EU dumps pork in China

It is reported that in 2023, the dumping rate of EU-related pork products against China will be as high as more than 60%.

The EU pork market price is 2.21 euros per kilogram, which is about 17 yuan/kg at the current exchange rate, and the current pork price in the Chinese wholesale agricultural market is about 24.38 yuan/kg (June 24).

A person from the pork branch of the China Animal Husbandry Association told the reporter of China Business News: "Such an ultra-low pork price has had an impact on domestic breeding enterprises. ”

From 2023 to the first quarter of 2024, China's pork prices have come out of a long-term downturn and have risen in price, the main reasons for which are similar to "strong men breaking their wrists", cutting production capacity and greatly reducing the number of fertile sows.

According to the monitoring data of the Ministry of Agriculture and Rural Affairs, the average prices of piglets, live pigs and pork in May 2024 were 38.70 yuan/kg, 15.59 yuan/kg and 25.24 yuan/kg, respectively, with year-on-year changes of 6.04%, 7.16% and 4.09%, and month-on-month changes of 5.38%, 1.55% and 0.24% respectively. Pig prices have risen significantly since mid-to-late May, and the rapid upward trend continued in June, and the average price of live pigs slaughtered in mid-June has reached about 19 yuan/kg.

China is the EU's largest exporter of pork and a destination for it to transfer excess capacity. There is a lot of excess capacity for pork in the EU, with an average of 4.26 million tonnes per year.

On the afternoon of June 20, at a press conference of the Ministry of Commerce, spokesman He Yadong said that at the request of the domestic industry, the Ministry of Commerce launched an anti-dumping investigation on import-related pork and pig by-products originating in the EU on June 17, 2024. In accordance with WTO rules and China's Anti-dumping Regulations, if it is determined after preliminary investigation that dumping has been established and has caused injury to the domestic industry, provisional anti-dumping measures may be taken after the preliminary ruling. After the investigation, the Ministry of Commerce will make a final decision, and if it meets the relevant regulations, it may impose anti-dumping duties.

A person from the pork branch of the China Animal Husbandry Association told reporters that if anti-dumping duties are imposed, it will help stabilize domestic pork prices.

The EU continues to provoke trade disputes

Recently, some media reported that China's announcement of an anti-dumping investigation against EU-produced pork is a countermeasure to the disclosure of the EU's preliminary anti-subsidy investigation on China's electric vehicles, and all sectors in Europe are worried that trade frictions may escalate or trigger a "trade war".

A spokesman for the Ministry of Commerce said that it was the European side that continued to provoke trade disputes.

It is understood that since 2024 alone, the EU has intensively introduced 31 trade and investment restrictions against China, including 25 trade remedy measures, and also launched an investigation on foreign subsidies (FSR) and international procurement instruments (IPI) against China, seriously disrupting China-EU economic and trade cooperation.

The spokesman believes that the European side continues to escalate trade frictions and may trigger a "trade war", and the responsibility lies entirely with the European side, at least the European side has "failed to do three things".

The leaders of China and the EU have always had a broad consensus on deepening cooperation and properly handling differences.

President Xi Jinping has repeatedly stressed that China and the EU should strengthen strategic communication and enhance understanding and properly handle differences through constructive dialogue. EU leaders have also expressed their high recognition on many occasions and hope to strengthen exchanges and dialogues with China and carry out more mutually beneficial cooperation.

A spokesperson for the Ministry of Commerce said: "In this EU countervailing investigation, the EU side ignored the important consensus reached by the leaders of the two sides, ignored the facts, ignored China's repeated solemn representations, predetermined the results of the investigation, and imposed improper tax rates, which harmed the interests of enterprises of both sides, undermined the overall situation of China-EU economic and trade cooperation, and affected global cooperation on climate change." ”

The Ministry of Commerce pointed out: "Judging from the feedback from all parties, the European Commission independently initiated a countervailing investigation on China's electric vehicles on the grounds of protecting the local industry without an industrial application, and the evidence is sufficient and the investigation is justified. In the course of the investigation, the results of the investigation were predetermined, the countervailing investigation tools were improperly used, and the samples were not taken in accordance with the rules and previous practices; The pre-disclosure of the results of the investigation shows that the Commission completely ignored the information provided by Chinese companies to cooperate with the investigation, artificially fabricated and exaggerated the so-called 'subsidy' program, and ruled high tax rates in violation of regulations. ”

A spokesperson for the Ministry of Commerce said: "The above practice seriously violates the WTO's principles of openness, fairness and non-discrimination and the spirit of multilateral cooperation. ”

More specifically, the legitimate rights and interests of enterprises are not protected.

A number of Chinese electric vehicle companies revealed that in the EU countervailing investigation, they intimidated, coerced and pressured Chinese companies to identify punitive high tax rates, and demanded overly broad information, many of which involved commercially sensitive information and core corporate secrets, and spied on the trade secrets and intellectual property rights of Chinese enterprises. The EU side operates in the dark, conceals the information of EU production enterprises, and does not timely and completely disclose the damage assessment of the industry in the EU, squeezing the time for Chinese enterprises to fill in the questionnaire and eroding the right to know and defend Chinese enterprises. The EU unfairly presupposes the results, selects the sampled enterprises in a targeted manner, excludes the enterprises with the largest export volumes, distorts the survey results, ignores the defense opinions and evidence submitted by the enterprises, and undermines the legitimate operation rights and fair competition rights of Chinese enterprises.

A spokesperson for the Ministry of Commerce said: "The EU's approach is typical of protectionism, and China's determination to safeguard its legitimate and legitimate interests is unwavering. China hopes that the EU side will match its words with deeds and act in the same direction, implement the consensus reached by the leaders of the two sides, accommodate the legitimate concerns of both sides, properly handle differences through dialogue and consultation in accordance with WTO rules, return to the right way of getting along with China and the EU, avoid the escalation of trade frictions from getting out of control, and jointly promote the steady and long-term development of China-EU economic and trade cooperation. ”

(Editor: Hao Cheng Review: Wu Kezhong Proofreader: Zhai Jun)