China launches investigation into European dairy imports

China initiated an anti-subsidy investigation into dairy imports from the European Union on August 21st, 2024. This move escalates tensions with the EU, just a day after Brussels announced revised tariffs on electric vehicles from China. The investigation focuses on various dairy products, including cheese, milk, and cream, intended for human consumption.

Response to revised tariffs

On 20 August, the European Union announced adjustments to the proposed tariffs on Chinese electric vehicles, reducing them from 37.6% to 36.3%. However, this adjustment did not satisfy Beijing's call to completely eliminate the tariffs. In response, China's Ministry of Commerce expressed concern and opposition, stating that it would take measures to protect Chinese companies.

Investigation into subsidies in eight EU countries

The anti-subsidy investigation into dairy, filed by the Dairy Association of China and the China Dairy Industry Association, targets subsidies in eight EU countries, including Austria, Belgium, and Italy. Ireland, the largest exporter of dairy products to China, and France, the second-largest supplier of cream, are among the countries being scrutinized. In 2023, the EU exported €1.7 billion worth of dairy products to China, down from €2 billion in 2022.

The European Commission has stated that it will strongly defend the interests of the EU dairy industry. The European Dairy Association also expressed confidence in the EU's compliance with WTO rules and emphasized the importance of a clearer understanding of the trade relationship between China and the EU.

Reuters.com