Headline:
China Launches Antidumping Probe into Imported Beef Amid Domestic Industry Struggles
China has initiated an antidumping investigation into imported beef as of December 27, according to the Ministry of Commerce. The investigation comes in response to a request filed by the China Animal Husbandry Association and nine other industrial associations representing the country’s main beef-producing regions. The filing is on behalf of China’s domestic beef industry, as laid out in a ministry statement.
The request contends that imported beef volumes have surged over the past five years, with a 106% increase in the first half of 2024 compared to the same period in 2019. This influx, they argue, has led to a glut of supply and a subsequent drop in prices, causing significant harm to the domestic industry.
The probe will examine imported beef from January 1, 2019, to June 30, 2024, as reported by the Xinhua news agency. The investigation is expected to conclude within eight months, though extensions are possible under certain circumstances.
China, the world’s largest importer and consumer of beef, is facing a market oversupply that has driven domestic prices to multi-year lows. Major beef exporting nations, including Brazil, Argentina, Australia, and Uruguay, could be impacted by any trade measures aimed at reducing these imports, as noted by Reuters.
Chinese customs data reveals that total beef imports reached $14.2 billion in 2023, up from $8.2 billion in 2019. Brazil accounted for 42% of these imports, followed by Argentina at 15% and Australia at 12%. The ministry stated that imports under investigation represent 30.9% of China’s market.
The China Animal Husbandry Association has reported that most Chinese cattle farms are currently operating at a loss. The average wholesale price of beef has decreased by 22% to 59.82 yuan (approximately $8.20) per kilogram since December 2022, down from 77.18 yuan two years ago.
In response to the probe, the Brazilian government has stated that it will work over the next few months to prove that Brazilian beef exports to China are complementary to, rather than injurious to, Chinese production. The government reaffirmed its commitment to defending Brazil’s agricultural interests while respecting China’s trade decisions.
