China’s SSE Index Dips: Reduced EU Pork Tariffs, EV Trade Talks Ongoing

The SSE Composite Index closed lower today, influenced by evolving trade dynamics between China and the European Union. The index concluded the day at 3,824.81, a 1.11% decrease, and now sits 5% below its recent high.

This downturn coincided with China's announcement of reduced tariffs on European Union (EU) pork imports, following an 18-month anti-dumping investigation.

The SSE index has gained 17.23% year to date, and is testing an earlier support level, with bulls looking for a bounce.

China's Ministry of Commerce announced the imposition of anti-dumping tariffs ranging from 4.9% to 19.8% on pork imports from the EU, effective December 17, 2025, for a duration of five years. This final ruling significantly lowers the preliminary tariffs of up to 62.4% that were introduced in September. The reduction is expected to alleviate trade tensions between China and the EU, particularly benefiting major pork exporters like Spain, the Netherlands, and Denmark. The Ministry also stated that excess tariffs paid since the preliminary ruling would be refunded.

The anti-dumping investigation into EU pork imports began in June 2024, following the EU's imposition of tariffs of up to 45% on Chinese electric vehicles in October 2024. China's initial response included provisional anti-dumping duties on EU pork imports, with rates reaching up to 62.4%. The recent reduction in tariffs indicates a potential easing of trade tensions and a move towards more balanced trade relations.

In a related development, China's Ministry of Commerce announced the resumption of negotiations with the EU regarding a proposed minimum price plan for Chinese-made electric vehicles.

These talks aim to address the EU's concerns over alleged unfair subsidies and the potential oversupply of Chinese EVs in the European market. The outcome of these negotiations could further influence trade dynamics and investor sentiment.

European leaders have previously highlighted Beijing’s growing trade imbalance with major trading partners, including the EU, as tariff tensions with Washington propelled Chinese exporters to redirect shipments to non-U.S. markets. China’s trade surplus reached a record of more than $1 trillion for the year as of November.