China threatens to boycott EU pig and dairy exports

In response to the investigation into possible Chinese dumping of cheap electric cars, China has launched an investigation into pork dumping. The CCCEU is also threatening stricter import restrictions for dairy and wine. Although the precise details of any measures against all three industries remain unknown.

Trading rules
Brussels believes that China offers unfair competition in the European car market. This is because Chinese car makers can count on significant state support from Beijing. The case has been going on for a while. In October 2023, the European Union launched an investigation into Chinese electric car exports. A decision on whether the European Commission wants to ban Chinese cars was expected on June 5. However, it is expected that the decision will be postponed until June 10 (the day after the European elections in many Member States). Brussels probably wants to prevent excessive polarization just before the elections. 

However, China sees the criticism of exports as protectionism. The Chinese government indicates that the European Union is violating its own trade rules and indicates that there are no subsidies that violate European rules. From a Chinese context, the EU is mainly trying to destabilize the Chinese economy and supply chains in order to advance their own car industry. The country calls on the European Union to stop the investigation.

The car market is also shocked
Moreover, the European car industry does not support the attempt to ban Chinese cars from the European market. German manufacturers in particular are against it. That is not surprising, since China is the largest sales market for German cars. China is threatening a 25% increase in tariffs on European cars. 

Trading houses in the dairy sector take the threat from China seriously and fear the consequences of a possible trade war between the two superpowers.