The Chinese government is targeting European farmers as an alternative of German automotive manufacturers and is launching an investigation into pork imports from the European Union, just days after the EU announced impose provisional duties for electric vehicles made in China.
The Commerce Department didn’t mention the EV tariffs when it announced Monday that it was launching an anti-dumping investigation into pork from Europe, however the move is widely seen as a response to the EU’s move in electric cars. It also gives China a negotiating tool in possible trade negotiations.
China could have imposed a 25 percent tariff on imports of large-engined gasoline vehicles within the name of fighting climate change, a move that might have hit Mercedes and BMW hard. By opting against it, no less than for now, the federal government could possibly be acknowledging the German auto industry’s public opposition to the EU tariffs, in addition to its significant production in China.
The Chinese market is a crucial marketplace for German automotive manufacturers, and the top of the German automobile association VDA described the June 12 announcement of the EU tariffs as an additional step away from global cooperation. “The risk of a global trade conflict increases further as a result of this measure,” Hildegard Müller said in an announcement.
The investigation into EU pork imports will cover a spread of products, including fresh and frozen pork, intestines and other offal. According to the announcement, the investigation is anticipated to last for one 12 months, with a possible extension of six months.
Olof Gill, trade spokesman for the European Commission, told journalists in Brussels that the EU’s agricultural subsidies were “strictly in line with our WTO commitments” and that the Commission would follow the investigation very closely and intervene if crucial to be sure that the Chinese investigation complies with World Trade Organization rules.
Chinese officials said the EU investigation into subsidies for electric vehicle Production in China is a “typical protectionist behavior” that disregards WTO rules. The EU plans to impose provisional tariffs of 17.4 to 38.1 percent on electric vehicles from China for 4 months from July 4. They would apply to vehicles exported to Europe by each Chinese and foreign brands, including Tesla.
