China on Wednesday announced an anti-subsidy investigation into dairy products produced in the European Union, the latest move in response to the bloc’s tariff hikes on Chinese electric vehicles (EVs).
According to China’s Ministry of Commerce (Mofcom), the products under investigation included fresh and processed cheese, as well as uncondensed milk and cream without added sugar or other sweeteners.
The decision came after the EU revised countervailing duties on Chinese EV manufacturers a day earlier, which Beijing still fiercely opposed.
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Wednesday’s action followed Beijing’s announcement in June that it had launched an anti-dumping investigation into Pork products imported from the EU.
According to Chinese customs, China imported more than $315 million worth of contaminated dairy products from the EU in the first seven months of the year.
France was the largest supplier, shipping US$115 million worth of products during the period. Italy was in second place with US$43 million.
The investigation was launched following an application filed on July 29 by the Dairy Association of China and the China Dairy Industry Association, representatives of the domestic dairy industry, for an anti-subsidy investigation into imported dairy products from the EU.
Based on the application, the Ministry of the Interior said the investigation would cover 20 subsidies in favour of the dairy industry and companies in the EU.
Seven of these fall under the EU’s Common Agricultural Policy, the rest come from individual Member States.
The investigation covers imports from early April 2023 to end-March, while the period for assessing industrial injury runs from 2020 to the first quarter of 2023, Mofcom said.
The investigation began on Monday and is not expected to last longer than a year, but could be extended by another six months, the ministry said.
More to come…
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