The EU's sanctions against China are no joke. Those who impose them will hardly get away unscathed. This time, China launched its own anti-dumping investigation into several European goods. This move was a response to the EU's decision to impose tariffs of up to 38.1% on Chinese electric cars starting in July. This surprised and angered many Chinese firms, prompting them to request that the government start an anti-dumping investigation into imports of pork, brandy, and cars from the EU, as well as subsidies for dairy products from the eurozone.
This tit for tat could escalate trade tensions with China. If this happens, the sectors in the EU economy that rely heavily on China will be hit hardest.
According to the Global Times, China will conduct an anti-dumping investigation into meat imports from the eurozone. It is unclear which European pork producers will be affected, but it is expected to target offal, which makes up a significant portion of the imports. In 2023, their value exceeded $3 billion.
In January, Beijing already launched an anti-dumping investigation into brandy, mainly imported from France in containers under 200 liters.
The investigation will also focus on European subsidies for certain dairy products. It is still unknown which products will be scrutinized. In 2023, the main imports were dry whey, cream, and fresh milk, totaling €1.7 billion ($1.8 billion).
European car manufacturers are not exempt. Chinese producers are pushing to raise import tariffs on large gasoline vehicles to 25% from the current 15%. This would heavily impact many European carmakers, especially German ones, exporting SUVs and sedans to China.
The investigation will also touch on imports of plastics and polymers from the EU, as well as types of construction plastics from the EU, US, Japan, and Taiwan.
