China probes European pork prices after EU hikes tariffs on its electric cars

London CNN —

Beijing has launched an investigation into prices of pork from the European Union, targeting a major EU food export just days after Brussels hiked tariffs on electric vehicles from China.

The move risks escalating tension in one of the world’s biggest trading relationships and will heighten fears among EU exporters that Beijing could go after their goods to retaliate against the provisional EV tariffs.

China’s Ministry of Commerce said Monday that local agricultural producers had requested an anti-dumping investigation into pork and pig by-products from the EU and that a preliminary inspection had found sufficient grounds for a formal probe into whether their prices are artificially low.

It added that the investigation should conclude within a year but could be extended by six months if required.

A hike in import tariffs could be very costly for European pork producers if it ends up hurting demand in China, the world’s largest pork market and the main destination for EU pork exports. The EU is the second-biggest pork producer after China.

According to EU customs data, the bloc exported more than €2.5 billion ($2.7 billion) worth of pork, including offal, to China last year. Almost half of that came from Spain, with the Netherlands, Denmark and France also exporting substantial amounts.

BYD cars waiting for shipment at a port in Shenzhen, China's Guangdong province, on May 13, 2024

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Beijing has already launched an anti-dumping investigation into brandy imported from the EU and could impose tariffs that would hit French cognac makers. China could also target Europeanwine and luxury goods, according to analysts at