China is striking back after the EU imposed sanctions. The Chinese government has initiated its own investigation into European goods.
In early July, EU countries decided to impose tariffs of up to 38.1% on Chinese electric cars. In response, Chinese firms asked their government to start an anti-dumping investigation into certain imports from the EU, including automobiles.
Analysts believe this move by China could escalate the trade conflict. If this happens, the industries in the European Union that work closely with China will suffer the most.
Pork Products
China is expected to investigate pork imports from the EU. It is unclear which producers will be affected, but it might involve by-products, which make up the bulk of imports. In 2023, the country imported over $3 billion worth of pork.
Dairy Products
The investigation will look into European subsidies for certain dairy products. However, targeted products have not yet been determined. Last year, leading imports included dry whey, cream, and fresh milk, totaling €1.7 billion ($1.8 billion).
Alcohol
In January 2024, China began investigating brandy imports, mainly from France, in containers of less than 200 liters.
Cars
The European auto industry is also under scrutiny. Chinese manufacturers aim to increase import duties (up to 25%) on large gasoline cars. The current import tariff in China is 15%. This will mainly affect German automakers exporting SUVs and sedans to China.
Plastics
The investigation includes plastics and polymers from the EU, as well as types of construction plastic imported from the EU, the US, Japan, and Taiwan.
This situation highlights the ongoing tension and potential for further trade disputes between China and the EU.
