China pledges fair ruling in beef tariff investigation

By Ella Cao and Tom Polansek

BEIJING, April 1 (Reuters) - China pledged to deliver a "fair and objective" ruling following a hearing in its ongoing investigation into beef imports, a review that could lead to higher tariffs or import limits if domestic producers are found to be at risk.

Launched last year, the probe covers all imported beef rather than any specific country and comes as slowing demand and a domestic supply glut squeeze China's beef market - the world's largest for imports and consumption.

Monday's hearing brought together around 180 representatives, including officials from major suppliers Brazil, Argentina, Uruguay, Australia and the United States, China's Ministry of Commerce said in a statement. Exporters, trade associations, Chinese importers and domestic beef producers, also attended, the ministry said.

China imported a record 2.87 million metric tons of beef in 2024, according to customs data, heightening concerns over possible trade restrictions that could hit top suppliers.

U.S. Meat Export Federation spokesman Joe Schuele said U.S. beef primarily served China's high-end food service and retail sectors, and did not compete directly with domestic beef which is often priced at lower levels.

"We don't feel that any restrictions on U.S. beef are going to benefit the domestic industry," Schuele said.

A Brazilian beef consultant, speaking on condition of anonymity, said Brazilian beef was price-competitive and overlapped with segments of China's domestic market.

"Everyone here is worried about the outcome of this investigation," said the consultant.

The industry's concerns have been amplified by recent developments. Last month, Chinese customs temporarily suspended beef imports from six companies in Brazil, Argentina and Uruguay.

The Brazilian Association of Meat Exporting Industries said in March the companies had failed to meet Chinese requirements for the registration of foreign establishments, but did not elaborate.

Among the affected factories is one in Brazil's Goiás state that is owned by meat packing giant JBS JBSS3.SA and is one of the biggest beef export plants to China.

"Traders fear more suspensions could be looming," the consultant said.

The meat investigation, which began on December 27, is expected to last eight months but could be extended under special circumstances.

Meanwhile, China has yet to renew export registrations for U.S. beef facilities that expired on March 16, leading to hesitation among traders to strike deals for American beef produced after that date.

The U.S. beef industry is already navigating a 10% tariff imposed as part of China's retaliatory duties on some $21 billion worth of American farm goods. Any additional trade restrictions would further strain sales.

Brazil, Uruguay, the U.S. and Australia are among China's major beef suppliers.