China has launched an official investigation into the pricing practices of pork and pig by-products imported from the European Union, according to CNN, an escalation in trade tensions just days after the EU implemented higher tariffs on electric vehicles (EVs) from China. 

Beijing's Ministry of Commerce is responding to complaints from local agricultural producers, who allege that EU pork products are being sold in China at unfairly low prices (dumping), potentially harming domestic producers.

After an initial review, the Ministry found enough evidence to start investigating. This will take up to a year to complete, with a possible six-month extension if needed. If China imposes anti-dumping tariffs as a result, it could impact EU pork exporters since China is their largest market, where they export over €2.5 billion ($2.7 billion) worth of pork annually.

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China's Retaliation Against EV Tariffs

While the investigation was not confirmed to be an act of retaliation, pork pricing report by the Ministry coincides with the EU's imposition of additional tariffs ranging from 17.4% to 38.1% on Chinese-manufactured electric vehicles (EVs). 

This tariff increase, aimed at protecting European automakers, has provoked strong objections from Beijing. 

 VCPost reported that China has already indicated potential countermeasures targeting EU goods such as brandy, wine, and luxury items, escalating fears of an escalating trade conflict.

European officials, including Olof Gill from the European Commission, emphasized the EU's readiness to closely monitor the pork investigation to ensure adherence to World Trade Organization (WTO) rules. 

Meanwhile, the EU remains steadfast in its stance on agricultural subsidies, asserting compliance with WTO obligations despite potential challenges from China.

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