This Chinese export boom really has legs – and wings

In Tengzhou, China, Dang Yangyang, general manager of Wintop Food, recently hosted clients from Ghana, Iraq, Jordan, Russia, and Senegal – all seeking one thing: Chinese chicken. Wintop processes 60 million chickens annually, selling a variety of products to over 20 countries. Exports made up half of the company's profits last year, driving a 33-acre expansion.

Dang explained that when the meat costs $1,000 less per ton than competitors from Brazil and Thailand, clients have no choice but to purchase from China. Wintop is part of a wave of Chinese protein producers overcoming the country's questionable food-safety history and capitalizing on additional capacity to secure a spot on global supermarket shelves.

With changing diets at home and Beijing's focus on food security, companies are investing in technology and expansion, producing more than China's domestic demand and exporting excess supply. This surge in cheap Chinese protein is drawing attention from Western producers and regulators, potentially leading to trade tension. The European Commission has already launched an anti-dumping probe into Peking duck imports and imposed duties on Chinese pea protein.

However, chicken remains undumped, though European authorities are monitoring the market. Agriculture and food are the few sectors where China still faces a trade deficit, though it has been shrinking. Last year, China became a net exporter of chicken, exporting $2.6 billion worth of products, almost double the 2020 levels. For global consumers, the trend means cheaper protein, while foreign producers face increased competition.