China plans to investigate European dairy imports as the trade disagreement intensifies.
The Chinese Ministry of Commerce revealed on Wednesday that local dairy corporations have petitioned for an investigation, pointing out around 20 diverse subsidies that might benefit the EU dairy sector. These incentives encompassed funding for agricultural machinery and supplementary income for young farmers, alongside environmental and administrative subsidies.
In its announcement, the ministry indicated that preliminary examination of the facts had supplied ample justification for launching an anti-subsidy probe. They mentioned that this investigation could extend up to 18 months.
The EU is recognized globally as a significant dairy exporter, with China serving as the second-largest market for its skimmed milk and whole milk powders, as per data provided by the European Commission. The UK and US rank first and second in terms of EU's butter and cheese exports, with China and the US appearing in 3rd and 8th position respectively.
This disclosure followed the EU's confirmation on Tuesday that it would levy additional tariffs on a majority of electric vehicles imported from China.
Both Beijing and Brussels have been entangled in an ongoing trade dispute since last September, when the EU commenced an investigation into China's allegedly unjust state aid for electric vehicle manufacturers. The EU is also scrutinizing China's support for wind turbine manufacturers.
On the other hand, China has initiated anti-dumping investigations concerning brandy and pork products from the EU.
Olof Gill, a representative from the European Commission, expressed in a statement on Wednesday that the EU's executive branch would closely monitor Beijing's investigation and intervene as necessary to ensure compliance with World Trade Organization regulations.
"The Commission will vigorously protect the interests of the EU dairy industry and the common agricultural policy," he added, referring to the EU's agricultural support plan for farmers.
The Chinese Ministry of Commerce's announcement of an anti-subsidy probe into EU dairy subsidies could potentially impact the business operations of EU dairy companies in China. Olof Gill, from the European Commission, stated that they will closely monitor the investigation to ensure compliance with World Trade Organization regulations and protect the EU dairy industry's interests.
