After Brussels investigated the Chinese EV industry in recent months, China had already warned of possible retaliatory measures. China now states that imports of certain EU dairy and pork products could be targeted, potentially leading to prolonged trade sanctions.
According to Chinese customs data, the EU was the second largest source of dairy products for China in 2023, accounting for at least 36% of total import value, after New Zealand. Australia was the third largest exporter. While it remains unclear which products China might target in retaliation, whey powder, cream, and fresh milk were the top items among the EUR 1.7 billion of EU dairy exports to China last year.
Countries such as the Netherlands, France, Germany, Ireland, and Denmark are most likely to face additional import tariffs on dairy products in the Chinese market. The Netherlands, Denmark, and France are also important pork suppliers, although Spain was China’s largest supplier last year, followed by Brazil and the United States.
"We are worried," said Arnaud Rousseau, chairman of France’s largest farmers’ union FNSEA, to reporters when asked about possible Chinese measures against EU pork imports.
"There are certain parts of the pig that are not eaten in Europe and need markets, and China is an important market… We could quickly encounter problems if we don’t have trade with certain countries. Last year, China imported USD 6 billion worth of pork, including slaughter waste, according to Chinese customs data.
EU Agriculture Commissioner Janusz Wojciechowski recently said it was his intention "to avoid as much as possible that agriculture bears the costs of problems in other sectors." “The European Union’s position is that open trade in food is a very important instrument for ensuring global food security,” he said.
China has in the past often implemented targeted trade sanctions with food products being the focus in previous trade wars.