SHANGHAI: Global food companies from dairy producers to pork exporters are on high alert for potential retaliatory tariffs from China after the European Union's decision on Wednesday to
"Chinese domestic industries have the right to file applications for investigations to safeguard the order of normal market competition and their legitimate rights and interests," ministry spokesperson He Yadong said."If you have additional trade barriers it could cause ... reshuffling of global markets," said Kimberly Crewther, executive director of representative body Dairy Companies Association of New Zealand.
The EU was China's second-largest source of dairy products with at least 36 per cent of the total value of imports in 2023, only behind New Zealand, according to Chinese customs data. Australia was its third-largest exporter. The Netherlands, Denmark and France are also major suppliers of pork, though Spain was China's top supplier last year, making up nearly 23 per cent of its total pork imports, followed by Brazil and the United States.
Major New Zealand producers Fonterra and A2 are already doing a roaring trade with China, and both Australia and New Zealand have free trade agreements with China that remove import duties. "The European Union's position is that the open trade of food is a very important instrument to ensure food security at the global level," he said.