China is investigating EU dairy imports for anti-subsidy violations, a surprise turn in international trade politics. After the EU adjusted, but not eliminated, its proposed tariffs on Chinese-made electric vehicles, this action follows. The EU’s new plan imposes a 36.3% levy on these EVs, down from 37.6% but far from Beijing’s goal of a complete pullout.
The Ministry of Commerce announced an anti-subsidy investigation into cheeses, milks, and creams in China. The Dairy Association of China and the China Dairy Industry Association complained about subsidies from Austria, Belgium, Croatia, the Czech Republic, Finland, Italy, Ireland, and Romania, prompting the probe.
This dairy drama involves Ireland, which sent $461 million in dairy to China last year, making it the largest EU dairy exporter. EU dairy exports to China fell to €1.7 billion in 2023 from €2 billion in 2022, but the bloc remains a major provider.
This investigation follows China’s EU pork import anti-dumping probe, heightening trade tensions. In 2023, EU battery EV exports to China totalled $13.5 billion; thus, China’s policy appears to be a delicate balance between trade concerns and economic objectives.
Image Credit: https://cloudfront-us-east-2.images.arcpublishing.com/reuters/TZHPZCDRKZNIDNZHUJOFE5L6XU.jpg
