US pork imports stuck at Chinese ports as Beijing ramps up inspections amid trade row

Officials checking every incoming shipment, causing huge delays, director of world’s biggest pork company says

PUBLISHED : Wednesday, 09 May, 2018, 4:35pm
UPDATED : Wednesday, 09 May, 2018, 11:03pm

China has ramped up inspections of pork shipped from the United States, importers and industry sources said, the latest American product to be hit by a potentially costly slowdown at Chinese ports in the past couple of weeks.

Some industry watchers said Beijing was sending a defiant warning to Washington in response to sweeping US trade demands made on China last week.

The stepped-up checks have even hit China’s WH Group, the world’s largest pork company and owner of Smithfield Foods in the United States, and come amid increasing scrutiny of other US agricultural goods, including fruit and logs.

China ‘wants to talk about cutting US trade deficit but will not back down on industrial policy’

Luis Chein, a director at WH Group, China’s top importer of US pork, said port officials were opening and inspecting every cargo that arrived.

That compared with inspections carried out only “randomly” in the past, he said, significantly lengthening the time products stayed at the port.

China’s General Administration of Customs, which oversees food imports, did not respond to a fax seeking comment.

The US Agriculture Department was troubled by the reports and urged China to give US exports full access to its market, an agency representative said.

Increased checks on US products were “not terribly surprising”, said Even Rogers Pay, an agriculture analyst at China Policy, a Beijing-based consultancy.

“In a situation where trade tensions are high, China will enforce every possible regulation on its books. It makes strategic sense to do so at this point,” she said.

Chinese Vice-Premier Liu He to go to Washington to continue talks to avert a trade war

Late on Monday, China’s customs agency announced it was stepping up quarantine checks on apples and logs from the United States after detecting pests in imports of the products at Chinese ports.

US President Donald Trump has threatened tariffs on up to US$150 billion worth of Chinese goods, largely because of allegations that Beijing misappropriates US technology through joint-venture requirements, unfair licensing practices, outright theft and state-backed acquisitions of US technology firms.

Beijing denies those accusations.

China’s top economic official, Liu He, will visit Washington next week to resume trade talks, the White House said on Monday, after a US delegation led by Treasury Secretary Steven Mnuchin came away from a visit to Beijing last week with no agreement over a long list of US trade demands.

US pork is now sitting at Chinese ports for up to two weeks, instead of a few days, industry sources said.

Donald Trump calls Xi Jinping for trade result that ‘benefits American businesses’

Most of the imported pork is frozen and not at risk of perishing, but the move comes on top of the additional 25 per cent duties Beijing slapped on American pork and a slew of other goods last month, in retaliation for US tariffs on steel and aluminium imports.

The United States is one of China’s top overseas pork suppliers, shipping US$489 million worth of the meat last year.

A person working at a Shanghai-based meat trading firm said customs officials were also taking samples from about 20 per cent of US pork shipments since last month, up from about 5 per cent previously.

He declined to be named because of the sensitive nature of the topic.

There had been no change for imports from other destinations the company buys from, including Canada and Europe, he said. Two German pork exporters said they were not aware of any changes to inspections.

US, China in fresh row as Beijing tells foreign airlines they will be punished for failing to respect territorial claims, report says

Stepped up inspections and sampling were also cited in an April 30 report by the United States Department of Agriculture attaché in Beijing, which said the new measures had started on April 23 but gave no further details.

The tariffs have already cut off demand for muscle cuts, or higher value pork meat, and pressured the price of so-called “variety” meat, such as offal and feet, the biggest portion of US pork exports by volume.

Also, China’s domestic hog prices have plunged in the first quarter, and are still hovering close to eight-year lows of about 10 yuan (US$1.57) per kilogram. That had led WH Group to sharply reduce its imports anyway this year, Chein said.

China’s total pork imports in the first three months of the year fell 10 per cent year on year to 595,611 tonnes, according to Chinese customs.