27th December 2024 – (Beijing) China’s Ministry of Commerce (MOFCOM) has announced a safeguard investigation into imported beef, commencing today. This decision follows a request from ten domestic industry associations, which highlighted the significant impact of rising beef imports on the local market.
The investigation will analyse data from 1st January, 2019, to 30th June, 2024, focusing on the sharp increase in beef product imports that the applicants argue has harmed China’s domestic industry. MOFCOM noted that the associations claim a direct correlation between the surge in imports and the serious injury sustained by local producers.
The number of imports subject to the investigation has notably increased, with 2023 figures showing a 64.93% rise compared to 2019. Furthermore, imports in the first half of 2024 were reported to be 106.28% higher than in the same period of 2019, leading to a growing market share for imported beef, which climbed from 20.55% to 30.90% over the same timeframe.
The China Animal Agriculture Association (CAAA), one of the groups advocating for the investigation, stated that the excessive importation of beef has severely impacted domestic farmers’ livelihoods and industrial viability. “China’s livestock industry strongly calls on authorities to take control measures on imported beef to protect domestic farmers’ livelihoods and industrial safety,” the CAAA emphasised in a statement.
In light of the ongoing challenges, the CAAA held a video conference on the domestic beef production situation, attended by leaders from various industry associations. Attendees discussed the serious difficulties facing the beef sector, with November’s national average beef price hitting 60.04 yuan ($8.23) per kilogram, marking a 14.79% year-on-year decrease—the lowest level since September 2019.
Li Guoxiang, a researcher at the Rural Development Institute of the Chinese Academy of Social Sciences, explained that international trade regulations permit safeguard measures when imports cause significant harm to domestic production. He indicated that the investigation is consistent with these multilateral trade rules and that should the investigation find a detrimental impact from beef imports, China may engage with its trading partners to negotiate export quotas.
The investigation comes amid a backdrop of increasing beef imports, which have reportedly surged to 2.6 million tons from January to November 2024, representing a 4.3% year-on-year increase. The trend has raised concerns within the industry, as the monthly import of beef has exceeded 200,000 tons for 18 consecutive months.
According to statistics from the General Administration of Customs, Brazil, Argentina, Uruguay, Australia, New Zealand, and the United States are the leading sources of beef imports into China, highlighting the country’s reliance on foreign beef products.
