China Launches Anti-Subsidy Probe into EU Dairy Products Amid Tensions

China initiated an anti-subsidy investigation into imported dairy products from the EU, intensifying trade tensions after the EU proposed tariffs on Chinese electric vehicles. The probe will examine subsidies from several EU countries and follows a complaint from China's dairy industry. The investigation highlights the escalating economic conflict between the two regions.

China has launched an anti-subsidy investigation into dairy products imported from the European Union, heightening trade tensions following the EU's draft decision to impose tariffs on China-made electric vehicles. The probe comes a day after Brussels adjusted its proposed punitive duties on Chinese EVs to 36.3% from 37.6%.

Announced by China's commerce ministry, the investigation will scrutinize subsidies on various cheeses, milks, and creams for human consumption. Prompted by a complaint from the Dairy Association of China and the China Dairy Industry Association, the investigation will focus on subsidy schemes from multiple EU countries, including Austria, Belgium, and Ireland.

Ireland, the largest EU exporter of dairy to China, sold $461 million worth of dairy products to the country last year. The EU was China's second-largest source of dairy imports in 2023. The investigation follows China's anti-dumping probe into EU pork in June, marking increasing trade friction between the two economic powerhouses.

(With inputs from agencies.)