EU Launches Investigation into Chinese Peking Duck Imports
Quick Look
- The European Commission has initiated an investigation into Chinese Peking duck imports following complaints from EU producers about unfairly low prices and alleged subsidies.
- This move escalates trade tensions between the EU and China, potentially impacting ongoing negotiations.
AI-generated summary
Why It Matters
The European Commission has launched an investigation into Chinese Peking duck imports due to complaints from EU producers about unfair pricing and subsidies. This action occurs amid broader trade tensions between the EU and China.
The European Commission launched an investigation on Thursday into Chinese Peking duck after several EU producers complained of unfairly low prices harming their industry.
Without disclosing their names, the Commission said that five EU producers had complained that China is unfairly subsidising domestic production via its five-year plan for agricultural modernisation.
The probe comes at a time of heightened tensions between Beijing and Brussels, as the EU seeks to shield its market from cheap Chinese imports, triggering Beijing's ire as it aims to preserve access to the lucrative European market.
After China repeatedly threatened retaliation over several EU legislative proposals restricting access to EU public procurement and setting strict conditions on foreign investment, the two sides started negotiations last week to ease tensions.
However, the EU's latest move targeting duck imports could disrupt the talks by hitting China's agricultural sector for the first time.
It also said that the volume and prices of imports had a “negative impact on the quantities sold, the level of prices charged and market share held by the Union industry,” and that this had resulted in “substantial adverse effects on the overall performance” of the sector.
The Commission's investigation could result in anti-dumping duties being imposed on Chinese producers to protect the EU market.
Anti-dumping and anti-subsidy duties are among the EU's main trade defence instruments against China's aggressive push into its market. However, EU leaders gave the Commission a mandate in June to step up efforts to reduce the EU's €1 billion-a-day trade deficit with China. They want the EU executive, which has competence over trade policy, to review its trade defence tools and pursue a dialogue with Beijing that delivers tangible results.
EU Trade Commissioner Maroš Šefčovič met his Chinese counterpart, Wang Wentao, in Brussels last Monday to kick-start negotiations aimed at restoring a level playing field and addressing trade imbalances, which Brussels said had become “unsustainable”.
The EU already imposed tariffs on Chinese electric vehicles in 2024, triggering China's investigations and sanctions targeting EU brandy, pork and dairy products.
The EU hopes to achieve a breakthrough in negotiations with Beijing by October, when Šefčovič is due to travel to China.
What to Watch
AI outlook — possibilities, not facts
EU imposes anti-dumping duties on Chinese Peking duck.
Likely · Medium term
China retaliates with measures against EU products.
Likely · Medium term
Open Questions
- Will anti-dumping duties be imposed?
- How will China retaliate?
- Will this impact broader EU-China talks?
