China Extends EU Dairy Investigation: A Brewing Trade Tension

China has extended its anti-subsidy probe on EU dairy imports by six months, citing case complexity. The investigation, launched after the EU revised duties on Chinese EVs, covers cheese, milk, and cream. Ongoing trade tensions exist as China also investigates EU brandy and pork imports.

China has announced an extension of its anti-subsidy investigation into dairy products imported from the European Union by an additional six months. This decision, declared by the commerce ministry on Monday, highlights the ongoing trade tensions between Beijing and Brussels.

The investigation initially commenced last August, shortly after the European Union revised its duties on Chinese-made electric vehicles (EVs). The move came despite Beijing's urging for immediate changes. The revision did not fully satisfy China's expectations, leading to unresolved discussions on EU tariffs on EVs.

The Ministry of Commerce specified that the extension of the investigation, now set to conclude on February 21, 2026, reflects the 'complexity' of the case. Notably, China has previously extended similar investigations into EU brandy, dairy, and pork products while imposing significant duties on some imports.