Ministry urges US fairness in Shuanghui-Smithfield pork takeover

The Ministry of Commerce Tuesday urged US authorities to fairly treat and properly deal with the ongoing takeover of US pork processor Smithfield Foods Inc by Chinese meat processing firm Shuanghui International Holdings Ltd.

Shen Danyang, spokesperson for the ministry, denied the claim of some US senators that China prohibits pork imports from the US, and said the US is the largest exporter of pork to China.

Pork imports from the US to China grew from 80,000 tons in 2009 to 590,000 tons in 2012, and the first four months of 2013 saw an additional 120,000 tons, Shen said.

Shen made the remarks after several US senators wrote a letter to Treasury Secretary Jacob Lew Saturday urging him to include the US Department of Agriculture and the Food and Drug Administration in a review of the Shuanghui purchase of Smithfield, for consideration of food safety and national security. The senators said China prohibits pork imports from the US.

The deal, which is worth $4.7 billion and was announced at the end of May, still needs to be reviewed by the Committee on Foreign Investment in the US.

Shen said investments and acquisitions are normal market behaviors, and will be supported by the government as long as they abide by Chinese laws and the laws of their destination countries.

Shen explained that China prohibits the use of lean meat powder, a toxic additive in pig feed that can increase the output of lean meat, so imported pork must undergo tests to meet Chinese quality standards before entering the Chinese market, and there is no exception for US pork products.

China started to require third-party testing on March 1 to make sure US pork exports to China are free of the additive.