- China considers financial aids for EU dairy items
The Chinese government has initiated an investigation into subsidies on imported dairy goods from the EU, as declared by their Commerce Ministry in Beijing. Items such as fresh or processed cheeses are included in this probe, as stated in the announcement. The preliminary probe duration lasts for a year, wrapping up on August 21, 2025.
This move can be perceived as a counteraction to the EU imposing tax hikes on Chinese electric vehicles (EVs), as disclosed on Tuesday by Brussels. The EU Commission had earlier raised questions about unjust subsidies benefiting Chinese EVs, claiming they distorted the European market.
As per Brussels statistics, EU dairy exports to China amounted to €1.7 billion in 2020. The next year saw an increase to €2.1 billion in dairy exports. German milk is common in Chinese supermarkets and is highly valued in the region.
Further Products under Scrutiny
It's not the first time the Chinese government has investigated European products. In January, the Ministry of Commerce launched an investigation into EU brandy, primarily impacting French producers. Then in July, the agency announced its plans to probe imported pork and by-products from the EU.
Addressing the EU's newly imposed tariffs on Chinese EVs, China has accused Brussels of practicing protectionism. Chinese spokesperson Mao Ning in Beijing asserted that Brussels is disregarding facts, violating WTO rules, and causing harm to itself and others. The EU is urged to rectify its practices and cease politicizing trade and economic matters.
The Chinese government is investigating potential subsidies on imported dairy goods from the EU, including fresh and processed cheeses, as a response to the EU's tax hikes on Chinese electric vehicles. If found, these subsidies could be seen as distorting the European dairy market, much like the EU contends with subsidies benefiting Chinese EVs.
