In a significant development on Tuesday, China revealed its decision to reduce tariffs on pork and pig by-products imported from the European Union. This announcement followed the conclusion of a comprehensive, year-long investigation into allegations of anti-dumping related to European pork imports.

According to the Chinese commerce ministry, the revised tariff rates will range from 4.9% to 19.8% and will impact numerous European pork exporters. These new rates are set to be implemented starting Wednesday and will remain in effect for the next five years.

Previously, in September, China had introduced provisional anti-dumping tariffs that reached as high as 62.4% on EU pork imports, requiring deposits in cash.

The trade friction between China and the EU intensified following Brussels’ decision last October to impose tariffs up to 45% on electric vehicles imported from China, an action Beijing criticized as being protectionist.

China launched the anti-dumping probe in June last year as part of a countermeasure to the EU’s punitive measures against its EV sector.

The EU is the world’s largest pork exporter, selling around 13% of its annual production overseas, with China being the single largest buyer, according to estimates by S&P Global.

European leaders have called out 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.

Beijing’s curbs on rare earth exports had also threatened a shortage of the critical minerals at several European manufacturers that sought to diversify supply chains from China. The agreement that China struck with the U.S. in late October has allayed some concerns, as Beijing reportedly has started granting licenses for such exports.

The EU and China have also clashed over the export of semiconductors after the Netherlands took control of Nexperia, a Chinese-owned firm based in the country. Last week, Beijing called on the Dutch government to send a delegation to China for further negotiations.