China's Ministry of Commerce (MOFCOM) announced on Friday to launch a safeguard investigation into imported beef, starting from December 27, 2024, at the request of domestic industry associations.

The survey covers the period from January 1, 2019 to June 30, 2024, according to the ministry.

The MOFCOM on November 22 received the application for investigations of safeguard measures for the beef industry of China submitted by a number of domestic associations on behalf of the domestic beef industry. The applicants requested to conduct a safeguard investigation into imported beef.

The applicants stated that the sharp increase in the number of imports of beef products under application for investigation had caused an impact on China's domestic industry, and that there is a causal relationship between the increase of imports and the serious injury to China's domestic industry, said MOFCOM.

The number of imports of products applied for investigation - meat of bovine animals - increased sharply between 2019 and the first half of 2024. The imports in 2023 were 64.93 percent higher than in 2019, and imports in the first half of 2024 were 106.28 percent higher than in the first half of 2019, MOFCOM said, citing the application document.

From 2019 to the first half of 2024, the market share of imports of beef applied for investigation increased from 20.55 percent to 30.90 percent in China, and the proportion relative to China's total production increased from 24.87 percent to 43.87 percent.

The Global Times learned from an industry source on December 19 that the China Animal Agriculture Association (CAAA), which is one of the applicants for the safeguard investigation, has prepared related materials and submitted an application to relevant authorities, hoping to use WTO rules to help address the beef industry's temporary difficulties amid significant challenges in domestic operations and surging beef imports.

On December 19, the CAAA held a video conference on the domestic beef production situation, attended by heads of relevant industry associations from nine major production provinces and regions, including North China's Inner Mongolia Autonomous Region, Northeast China's Jilin and Liaoning provinces, and East China's Shandong Province, according to the source.

At the meeting, all attendees highlighted that currently, the production and operation of China's beef industry is facing serious difficulties. In November, the national average price of beef was 60.04 yuan ($8.23) per kilogram, a 14.79 percent year-on-year drop and the lowest level since September 2019.

Even worse, farmers in some areas have already sold off and slaughtered breeding cows on a large scale, seriously undermining the foundation of China's beef industry, according to industry leaders at the meeting.

At the same time, industry leaders noted at the meeting that China's imports of foreign beef have grown rapidly, particularly between 2019 and 2023, during which beef imports surged by 65 percent. In the first half of 2024, beef imports more than doubled those in the first half of 2019.

Meanwhile, nearly 70 percent of Chinese cattle farmers are currently incurring losses, according to industry leaders at the meeting.

"In order to help the industry overcome the difficulties, the association has prepared related materials and submitted an application to relevant authorities, hoping to use WTO rules to alleviate the temporary challenges facing the industry," the industry source said.

According to international practice, a safeguard investigation examines import trends and whether they cause or threaten serious harm to domestic producers.

According to statistics from the General Administration of Customs, in the first half of 2024, China's biggest import sources of beef products, in terms of quantity, were Brazil, Argentina, Uruguay, Australia, New Zealand and the US.

Source: Global Times

Date：2024-12-27