China's Beef Import Restrictions Impact on Domestic Related Enterprises

Based on the latest market data and trade information I have collected, I will analyze the impact of China’s beef import restriction policies on domestic related enterprises for you.

According to the latest trade data, China has imposed a 10% import tariff on U.S. beef products, which officially took effect on March 10, 2025 [1]. This measure is part of China’s countermeasures against U.S. tariff hikes. Additionally, market data indicates that the Chinese Ministry of Commerce may have issued an announcement on beef import safeguard measures on December 31, 2025, but specific policy details have not yet been fully disclosed.

• Fucheng Co., Ltd.
  (600965.SS), a major domestic beef breeding and processing enterprise, has seen strong stock performance in 2025 with a year-to-date increase of 36.78% [0]. The company’s current stock price is $5.95, with a market capitalization of $4.87 billion, indicating enhanced market confidence in domestic beef enterprises.
• The increased cost of imported beef makes domestic ranch products more price-competitive. Data shows that China’s beef price has risen from 56.41 yuan/kg to 61.16 yuan/kg [1], a significant increase.

• Import restriction measures reduce the impact of low-cost imported beef, providing domestic ranches with better pricing power.
• Financial data of Fucheng Co., Ltd. shows the company is improving, with the latest quarterly revenue reaching $313 million [0].

• Feed costs are still affected by the international market; China’s soybean import dependence exceeds 90% [1], pushing up breeding costs.
• Domestic ranches have relatively small scale effects and are difficult to fully replace the supply gap of imported beef.

• The continuous rise in domestic beef prices may suppress consumer demand.
• In contrast to the continuous decline in pork prices (pork wholesale prices fell by 18% in 2025 [1]), the price advantage of beef substitutes is obvious.

• Shuanghui Development
  (000895.SZ), one of China’s largest meat processing enterprises with a market capitalization of $91.71 billion [0], faces pressure from rising raw material costs.
• The company needs to balance rising raw material costs and product pricing to maintain a return on equity (ROE) of 24.36% [0].

• Processing enterprises need to adjust their supply chains and increase the proportion of domestic beef procurement.
• They may need to respond to cost pressure through product structure optimization.

• The rise in domestic beef prices has created market space for high-value-added products.
• Processing enterprises can improve profit margins through product upgrading and brand building.

• The increased cost of imported beef will accelerate the consolidation of the domestic beef industry.
• Large enterprises such as Fucheng Co., Ltd. and Shuanghui Development will benefit from the increase in industry concentration.

• Upstream ranch enterprises benefit from price increases.
• Midstream processing enterprises face cost pressure and need to pass it on to the downstream.
• End consumers face higher beef prices.

• Policy protection provides a development window for the domestic beef industry.
• It helps to improve the scale and standardization level of the domestic beef industry.

Based on the current market data and policy environment:

1. Short-term Focus
   : Ranch enterprises directly benefited such as Fucheng Co., Ltd., whose stock prices have already reflected policy benefits.
2. Mid-to-long-term Layout
   : Leading enterprises with complete industrial chains, such as Shuanghui Development, can better cope with cost fluctuations.
3. Risk Tips
   : Pay attention to policy continuity, changes in consumer demand, and fluctuations in feed costs.

China’s beef import restriction policies are generally beneficial to domestic ranch enterprises, helping to improve the industry’s profitability and market position. However, for meat processing enterprises, they face cost pressure in the short term and need to respond through supply chain optimization and product upgrading. In the long run, this will promote the healthy development and international competitiveness of China’s beef industry.

[0] Jinling API Data - Stock prices and financial data of Fucheng Co., Ltd. (600965.SS) and Shuanghui Development (000895.SZ)
[1] Trump 2.0 tariff tracker - Trade Compliance Resource Hub (https://www.tradecomplianceresourcehub.com/2025/12/28/trump-2-0-tariff-tracker/)
[2] China’s Pork Prices Continue to Decline, Suggesting Sagging Consumer Confidence - AgWeb (https://www.agweb.com/markets/pro-farmer-analysis/chinas-pork-prices-continue-decline-suggesting-sagging-consumer-confi)
[3] Can China Reduce Soybean Import Demand? Evaluating Soybean Meal Reduction Efforts - Successful Farming (https://www.agriculture.com/partners-can-china-reduce-soybean-import-demand-evaluating-soybean-meal-reduction-efforts-11877656)
[4] 2026 beef outlook: Tight supplies, highest demand since 1983 - Farm Progress (https://www.farmprogress.com/cattle-news/2026-beef-outlook-tight-supplies-highest-demand-since-1983)