China is taking the next step in the trade war with the European Union. The country has launched an investigation into possible dumping practices by three European pig exporters, including Vion. The Dutch company does not want to respond in detail, but does indicate that it agrees with the COV's position. He says there is no dumping.
In addition to Vion, China is also investigating the activities of Danish Crown and the Spanish Litera Meat. The companies have been summoned by the Chinese government to cooperate in an investigation. Partly on the basis of these investigations, the Chinese government determines whether in its view there is dumping. In addition, the research should show how extensive the damage is to the Chinese pig sector. To determine this, China also included 24 local producers in the survey.
This is the next step in the trade war between China and the European Union. China decided to investigate European pork, milk and wine exports after the European Union decided to increase import tariffs on Chinese cars from 10% to 38,1%. The European Union states that China is dumping its surplus of electric cars on the European market.
POV warns against the sale of by-products
The Pig Farming Producers' Organization (POV) indicates that there is no dumping on the Chinese market and that the investigation is mainly a politically driven instrument. According to the organization, the strategic importance of pork exports is substantial. The POV points out that the Netherlands must find a new destination for by-products such as pig snouts, feet and tails if China denies EU companies access to its market. The European Union son in law approximately 50.000 tons of residual parts per month on the Chinese market. For the Netherlands, that figure is around 10.000 tons per month.
The Central Organization for the Meat Sector (COV) also indicates that there is no question of dumping. The interest group states that it is confident that this will also be the conclusion of China's investigation. “We hope to continue the mutually beneficial cooperation with China so that we can provide Chinese consumers with high-quality, safe and sustainable pork products from Europe,” COV chairman Laurens Hoedemaker said in a press release. Vion does not want to respond, but does indicate that it agrees with the COV's position.