China targets European farmers, not its carmakers, in response to EU tariffs on electric cars

BEIJING (AP) — The Chinese government is targeting European farmers instead of German automakers by launching an investigation into EU pork imports, days after the E.U. Imposition of provisional duty On electric cars made in China.

The Commerce Department did not mention EV tariffs on Monday when it launched an anti-dumping investigation into pork from Europe, but the move is widely viewed. Reaction to EU action on electric vehicles. This gives China a bargaining chip in any trade negotiations.

China may impose a 25% tariff on imports of petrol-powered vehicles with large engines in the name of fighting climate change, a move that would have hit Mercedes and BMW hard. In choosing not to, at least for the time being, the government could acknowledge the German auto industry's public opposition to EU tariffs as well as its significant production in China.

The Chinese market is a key market for German automakers, and the head of the country's auto association, VDA, described the June 12 EU tariff announcement as another step away from global cooperation. “This move further increases the risk of a global trade conflict,” Hildegard Mueller said in a statement.

The investigation into EU pork imports will cover a range of products, including fresh and frozen pork, intestines and other internal organs. It is expected to take a year with a possible six-month extension, the announcement said.

European Commission trade spokesman Olof Gill told reporters in Brussels that EU farm subsidies are “strictly in line with our WTO obligations” and that the Commission will follow the investigation very closely and intervene as necessary to ensure the Chinese investigation. Complying with World Trade Organization rules.

Chinese officials say the EU is investigating the subsidies Electric vehicles Manufacturing in China is “general protectionist behavior” that ignores WTO rules. The EU plans to impose provisional tariffs of 17.4% to 38.1% on EVs from China for four months starting July 4. They will apply to vehicles exported to Europe by both Chinese and foreign brands, including Tesla.

EU exports of pork products to China peak at 7.4 billion euros ($7.9 billion) in 2020. They have since declined, hitting 2.5 billion euros ($2.6 billion) last year. Almost half of them came from Spain.

“We must avoid an escalation of trade countermeasures,” said Spanish Economy Minister Carlos Cuerpo.

Spanish pork industry association Interporc said in a statement that it would “offer full cooperation with the Chinese authorities” and provide them with the necessary documents.