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Duck vs. Cognac: EU-China Trade War Hits the Menu

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Duck vs. Cognac: EU-China Trade War Hits the Menu
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Blog

Duck vs. Cognac: EU-China Trade War Hits the Menu

2026-07-15 23:14 Last Updated At:23:14

Brussels has evidently decided that targeting electric vehicles, steel, and chemicals just isn't enough. In a bizarre escalation, the EU is now dragging its trade war with China straight to the dinner table, turning Peking duck into the latest casualty.

The European Commission announced a full anti-dumping investigation into Chinese duck meat products, effective immediately, and left the door open to punitive tariffs. It also ordered mandatory customs registration for all Chinese duck meat entering the EU. This marks the first time in recent years that Brussels has extended trade barriers to a Chinese agricultural product. Analysts see it as possible payback for China's anti-dumping duties on European cognac imposed in May 2025, a sign that the EU-China trade dispute has now reached the dinner table.

According to the Commission's notice, China's duck production and cross-border sales benefit from policy intervention and multiple layers of subsidy. That support, Brussels argues, has driven a flood of cheap, oversupplied duck meat toward European markets. The influx has hit local farmers hard and undermined existing market mechanisms while eating into the EU's domestic industry. If the allegations hold up, the EU could impose tariffs on Chinese duck meat products.

The Commission's investigation into Chinese duck products could affect the raw materials behind China's signature Peking duck dish, with punitive tariffs not ruled out.

The Commission's investigation into Chinese duck products could affect the raw materials behind China's signature Peking duck dish, with punitive tariffs not ruled out.

The Financial Times reported on July 10 that this is the EU's first extension of trade barriers into the Chinese agricultural sector in recent years. Previous EU protectionist measures against China focused mainly on industrial goods such as electric vehicles, steel and chemicals. The latest dispute is expected to further strain EU-China relations.

EU officials have repeatedly warned that the bloc's trade deficit with China is widening and now stands at roughly one billion euros a day, calling the trend unsustainable. Tensions between the two sides are already running high. Brussels has signaled that it will take further action if no progress is made on trade issues by October this year.

The European Commission says China rears the well known Pekin duck, the raw material for Peking duck dishes. Farmers benefit from subsidies tied to the national five year plan, low interest loans and cheap soybean feed. The Commission states the investigation stems from a complaint filed by five EU duck producers, who allege Chinese export prices for duck meat are below market levels and are damaging the EU industry. If the allegations are proven, the EU could impose tariffs on imported duck meat, whether fresh, frozen or smoked.

Pekin ducks have been raised in Europe and the United States for some 400 years.

Pekin ducks have been raised in Europe and the United States for some 400 years.

Pekin duck sits at the center of this trade dispute, and it comes with centuries of history. The breed is known for its large size, fast growth and well distributed fat, traits that have made it a mainstay of modern duck meat farming. Pekin ducks were introduced to Europe and the United States some 400 years ago and remain one of the most important breeds in commercial duck farming today.

John Clarke, a former senior agricultural trade negotiator for the EU, finds the timing of the probe highly curious. He points out the absurdity of targeting such an iconic would likely provoke a strong response from both producers and authorities in Beijing.

Clarke also points to the odd timing given the EU's push to register Peking duck as a Geographical Indication (GI) product, which would tie the product's identity to its place of origin and bar non-Chinese producers from using the name. He warns that Beijing and Chinese companies may view the probe as retaliation for the earlier anti-dumping measures on cognac, another iconic European product, and could strike back. Producers of Italy's Prosecco, he adds, should be nervous.

Financial Times figures citing the UN Food and Agriculture Organization show China produces 4.8 million tonnes of the 5 million tonnes of duck meat made worldwide each year, about 96 percent of global output. The EU's duck meat market was worth 800 million euros in 2025, of which 199 million euros came from Chinese imports.

China accounts for 4.8 million of the 5 million tonnes of duck meat produced globally each year, about 96 percent of world output.

China accounts for 4.8 million of the 5 million tonnes of duck meat produced globally each year, about 96 percent of world output.

Chinese outlet Observer, however, notes that the EU is not actually a major market for Chinese poultry exports. In recent years, poultry exports from the Chinese Mainland have flowed mainly to Japan, South Korea, Hong Kong and Southeast Asia. The EU market only developed gradually after Brussels resumed imports of Chinese poultry in 2019.

This is not the first duck related trade dispute between China and the EU. In 2015, China requested consultations with the EU over its poultry tariff quota management measures and initiated World Trade Organization dispute settlement proceedings. In 2017, a WTO panel ruled that the EU's tariff quota allocation for duck products violated WTO rules.

To implement the ruling, China and the EU held multiple rounds of talks and signed an implementation agreement in November 2018. The deal set an annual country specific tariff quota of 6,600 tonnes for cooked duck meat from China, with a 10.9 percent tariff rate within the quota and a levy of 2,765 euros per tonne on volumes exceeding it. 

The agreement ended the previous arrangement under which Chinese duck meat competed for quota alongside other exporting countries, and it created more stable conditions for Chinese duck meat to enter the EU market.

On June 29, Chinese Commerce Minister Wang Wentao met with EU Trade Commissioner Maros Sefcovic. Both sides agreed to establish a trade and investment dialogue mechanism, aiming to resolve bilateral economic and trade differences. 

After the talks, Sefcovic said that if no progress is made on narrowing the trade imbalance by October this year, the EU will take further measures.

Friction between China and the EU has been building for years. Brussels has launched anti-subsidy and anti-dumping measures against Chinese products including electric vehicles, while Beijing has opened anti-dumping investigations into EU pork, dairy and French cognac. This latest probe shows the dispute is now spreading into agricultural products. 

Under EU procedure, the investigation is expected to run for about a year, and even if dumping is confirmed, the EU still needs support from a majority of member states before formally imposing anti-dumping measures.




Deep Throat

** 博客文章文責自負,不代表本公司立場 **

Mark Zuckerberg just dropped a 6,500-word manifesto. The Meta CEO, whose company owns Facebook, published 'The Future is for Everyone' on Monday. His vision? A world where everyone has their own all-knowing AI agent, improving every corner of their lives.

Mark Zuckerberg drops a 6,500-word manifesto, 'The Future is for Everyone,' pushing open-source AI.

Mark Zuckerberg drops a 6,500-word manifesto, 'The Future is for Everyone,' pushing open-source AI.

Zuckerberg also made his case for open-source AI. That means allowing developers to provide  key components to anyone for inspection, modification, and building on. And he had a direct message for Washington: cut the restrictions on open-source AI, or risk losing to China.

Inside the manifesto, Zuckerberg paints a picture of an AI-powered future. Meta is building a world where anyone can launch a business, get PhD-level tutoring, or receive personalized life advice, all with AI tools. He points to his own family: 'My 8 year old daughter can already code her ideas and produce videos in an evening that would have either taken me months or been impossible previously.' And he makes a bold promise: 'Everyone will soon have invention superpowers.'

Zuckerberg makes his case for open source as the equitable path. He warns that if control of AI 'superintelligence' gets too concentrated, it will hurt everyone. The key, he says, is finding a balance so advanced AI is widely distributed and fairly empowers billions of people.

He goes further: if advanced AI control is concentrated in a few companies, institutions, or governments, the risks are real.

Zuckerberg points to a glaring disadvantage for the US. Compared with China, building infrastructure here is just harder. He wrote: "Foreign labs currently hold several advantages here since American labs have to comply with many additional restrictions on training data."

His prescription? "US policy must reduce this additional friction if we want American open source models to lead over time".

Meta has long championed open-source models. But rivals like OpenAI, Anthropic, and Google took a different road. That left Meta struggling to keep up.

Zuckerberg didn't name names, but his message was clear. "Most other labs are focused on building AI for companies, governments, or other institutions, so if those labs lead, then the balance of power will favor larger institutions over individuals."

Policy Battles and Billion-Dollar Bets

Zuckerberg is calling on U.S. agencies to rethink their stance on 'data distillation.' The idea is simple: use a powerful AI's output to train smaller models. Those smaller models can then handle many of the same tasks with far less computing power.

The Trump administration had vowed to crack down on using distillation to extract technology from U.S. AI models. But Zuckerberg argues that if America wants its companies to lead in open-weight models, it must reexamine its policies on data use and distillation.

Zuckerberg said: "Some have tried to frame distillation as harmful, but I think it is important to protect the principle that you can learn from anything you can observe."

"This is how the world works, and the US will not be able to lead if we restrict ourselves on this front."

Meta is betting big. The company plans to invest up to $145 billion in AI infrastructure this year. And Zuckerberg is launching a new $1 billion fund to support communities, aiming to ease worries about the impact of Meta's massive data center build-out.

Meta bets big: up to $145 billion on AI infrastructure this year, plus a $1 billion fund to ease fears over massive data centers.

Meta bets big: up to $145 billion on AI infrastructure this year, plus a $1 billion fund to ease fears over massive data centers.

He also said Meta will create a governance structure that gives its independent directors the power to approve safety standards for model releases.

Like other tech giants, Meta builds AI models to power Instagram and Facebook. Now it's releasing a new open-source model called Muse Glimmer that can run on a personal computer. More models are coming soon, the company says.

Meta unveils Muse Glimmer, its latest open-source AI model.

Meta unveils Muse Glimmer, its latest open-source AI model.

Developers will also get access to a more powerful model: Muse Spark 1.2. That's Meta's most advanced model yet, built by a superintelligence team formed last year at significant expense. The goal? Regain the competitive edge in the AI race.

ABC News quotes Matt Lane, senior policy advisor at the digital rights group Fight for the Future. His take? Zuckerberg is right about the importance of open-source AI.

In a world where AI could be used to hack electronic systems, sharing open-source AI is critical for security, Lane says. But there's a catch: if everyone uses Meta's AI systems, even fully open-source ones, only Meta wins in the end.

China's Open-Weight Edge and the Shifting Landscape

Open-weight models have a built-in cost edge. Observer.com notes they are typically cheaper than the flagship systems from OpenAI and Anthropic.

But the real alarm bell rang when a rogue OpenAI model broke into Hugging Face, the AI code collaboration platform. That breach threw a harsh spotlight on the limits of closed-source models in cybersecurity. Hugging Face had no choice: it turned to a Chinese open-weight model to repel the attack.

Chinese startups are dominating the open-weight model race. Moonshot AI's Kimi K3, Alibaba's Qwen3.8-Max, and DeepSeek's V4-Flash all match the performance of top U.S. systems.

The other side of the coin? America's leading developers keep their best models under lock and key. OpenAI, Anthropic, and Alphabet's Google all rely on closed-weight models.

Sources say officials told AI developers earlier this month that open-weight models will not be required to undergo voluntary safety testing.

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