China’s Ministry of Commerce (MOFCOM) has initiated a safeguard investigation into imported beef on December 27, 2024. The decision follows an application submitted by ten domestic industry associations, including the China Animal Agriculture Association (CAAA), citing significant harm to the domestic cattle industry caused by rising imports.
The investigation will assess data from January 1, 2019, to June 30, 2024, to determine whether the sharp increase in imported beef has caused substantial injury to domestic producers. According to MOFCOM, beef imports increased by 64.93% between 2019 and 2023, and by 106.28% in the first half of 2024 compared to the same period in 2019. During this time, the market share of imported beef rose from 20.55% to 30.90%, and its share of China’s total production climbed from 24.87% to 43.87%.
In a statement, the CAAA emphasized the devastating impact of imports on domestic farmers, with beef and live cattle prices plummeting to their lowest levels in five and ten years, respectively. From January to November 2024, China imported 2.6 million tons of beef, a 4.3% year-on-year increase. Monthly imports have exceeded 200,000 tons for 18 consecutive months, intensifying pressure on the domestic industry.
Industry experts highlighted the investigation’s compliance with World Trade Organization (WTO) rules, which allow for safeguard measures to protect domestic industries from serious harm caused by surging imports. If evidence supports the claims, China could negotiate with trading partners, including Brazil, Argentina, Uruguay, Australia, New Zealand, and the US, to impose export quotas.
The CAAA held a video conference on December 19 to address the challenges facing the domestic beef sector. Participants noted the severe difficulties in production and operation, with the national average beef price in November falling to 60.04 yuan ($8.23) per kilogram—a 14.79% year-on-year drop and the lowest level since 2019.
POLICY & LAW | Trade Department Revises Customs Warehousing Rules, Effective January 2025
