China-US Trade Frictions: Chinese importers of American pork and beef seek alternative sources
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China has responded to raised US tariffs by announcing extra import taxes on American pork and beef. And Chinese importers have already found alternative suppliers. Han Peng reports from Shanghai.
It's minus 20 degrees Celcius in this refrigeration hall in Shanghai. But outside a trade war could be heating up. China's hike in tariffs on pork imports from the United States will go into effect later this month in retaliation for the US decision to raise tariffs on Chinese steel and aluminum.
HAN PENG SHANGHAI "Most of the US pork imports to China are not really the major part of the pig. They are something like this: a pig face or pig feet. These are things that foreigners do not consume in their day to day lives. But they are popular ingredients that the Chinese can make into really delicious cuisines. If the Chinese stop buying them, few other countries would become huge markets for them."
Xu Wei is the general manager of one of Shanghai's largest food import companies. Last year, US pork and beef made up 10 percent of his firm's total imports. But he says that's about to fall sharply.
XU WEI, GENERAL MANAGER SHANGHAI NEW SOURCE INTERNATIONAL TRADING COMPANY "In total, we used to pay taxes of just 24% to sell US pork in China. But from April 20th, the taxes will rise sharply to over 50%."
Xu says his company won't take a major blow, as he had already found alternatives from his European and Australian partners.
XU WEI, GENERAL MANAGER SHANGHAI NEW SOURCE INTERNATIONAL TRADING COMPANY  "It's the US producers that will suffer. Chinese people don't need imported pork. It's a luxury. In the competitive Chinese market, US farmers have to sell the pork to us at lower prices. Otherwise, we can easily replace them with other exporters."
Higher import tariffs are likely to put off Chinese customers.
SHANGHAI RESIDENT "I used to buy a lot of US pork, but because of the trade war, a large proportion of the money I spend will go on taxes. Why should I pay for that? I'll just avoid the US goods and buy those from other countries."
The next Chinese target will be US beef if Trump goes ahead with his threat to impose tariffs on 50 billion dollars worth of Chinese goods. And Chinese importers and consumers are already seeking alternatives. Han Peng, CGTN, Shanghai.