China issues plan and preliminary results of anti-dumping probe into EU pork

China's Ministry of Commerce (MOFCOM) issued notice on Thursday, saying that investigating authorities will use a sampling method in anti-dumping probe into EU pork, while providing further details on the sampling plan and the preliminary sampling results for anti-dumping case involving pork and pig by-products from Europe. 

Given the large number of EU exporters and Chinese domestic producers involved, a full investigation would overburden investigating authorities and prevent the timely completion of the investigation, according to a ministry  notice. Therefore, in accordance with the relevant provisions of  corresponding domestic rules and regulations, the investigative authority decided on the sampling approach.  

Companies are selected for sampling based on their export quantities to China during the dumping investigation period, with the top three exporters in terms of export quantity selected, the notice read.Based on initial sampling, the investigation identified the top three EU exporters by export volume during the investigation period.

These exporters are Danish Crown A/S, VION Boxtel B.V., and LITERA MEAT S.L.U., have been instructed to complete a questionnaire within a specified timeframe.The announcement came as the European Commission (EC), the executive body of the EU, announced to impose additional tariffs of up to 38.1 percent on electric vehicles (EVs) imported from China starting in July, which prompted harsh criticism from Chinese officials as well as industry and business groups.

Chinese officials have repeatedly vowed to take all necessary measures to defend the legitimate rights and interests of Chinese companies.In a notice issued on June 17, MOFCOM said that the China Animal Agriculture Association on June 6, on behalf of the Chinese pork and pig by-products industry, submitted an application for an anti-dumping investigation into certain pork and pig by-products originating from the EU.

After a review of the application, MOFCOM determined that it meets the requirements for launching an investigation in accordance with the relevant laws.The probe will examine certain pork and pig by-products originating from the EU from January 1, 2023 to December 31, 2023.It will also investigate any damage done to domestic Chinese industry from between January 1, 2020 to December 31, 2023

According to statistics from the Ministry of Agriculture and Rural Affairs, the investigation agency selected the top 20 enterprises in terms of pig slaughter volume in the country in 2023 as sampling enterprises.The total slaughter volume of the 24 sampled enterprises in 2023 was approximately 44.78 million pigs, accounting for 6.16 percent of the national pig slaughter volume last year.

The probe is expected to end before June 17, 2025, but may be extended for half a year under special circumstances.

"Starting from 2023, the EU's exports of certain pork and pig by-products to China have increased significantly, making it necessary to investigate pricing factors in accordance with WTO rules," Cui Hongjian, a professor from the Academy of Regional and Global Governance under Beijing Foreign Studies University, told the Global Times in a previous interview.

Chinese analysts said that the MOFCOM probe was launched at the request of the domestic industry in line with WTO rules, in stark contrast to the actions of the European Commission's investigation, which was launched without an application from relevant domestic industry groups in the EU, while the investigation process was unfair, non-objective and in potential violation of WTO rules.