Chinese authorities are focusing on European dairy items.
The Chinese authorities are retaliating against the EU's new tariffs on imported electric vehicles from China by launching an "anti-subsidy investigation" on European dairy products intended for the Chinese market. This move could potentially lead to higher tariffs on selected EU products.
The Chinese Ministry of Commerce expressed its disapproval of Brussels' decision earlier, stating, "China strongly disapproves of this and is very concerned." They urged the EU to collaborate with China in a reasonable and pragmatic manner to prevent an escalation of trade disputes.
The EU Commission declared the new tariffs for Chinese electric vehicles on Tuesday, which could potentially reach 36.3% and would take effect by the end of October, for an initial period of five years. Major automakers like BMW, VW, and Tesla, which produce in China, will encounter lesser surcharges.
The EU accuses China of offering illegal subsidies to its manufacturers, and fears that this could negatively impact European producers, potentially leading to plant closures or job losses. As per Commission sources, negotiations with Beijing to prevent the tariffs are still ongoing, but have yet to result in any progress.
The EU Commission announced the increased tariffs in June, prompting China to initiate an "anti-subsidy investigation" on EU pork. The looming surcharges on specific product categories have led to tension among EU member states. Spain, being the largest exporter of pork, would likely be affected the most by these measures.
- In response to the EU Commission's accusations of illegal subsidies, the European Commission is actively engaging in negotiations with the Chinese authorities to prevent the implemented tariffs on European dairy products.
- The European Commission, which is at the forefront of these discussions, is hopeful that a reasonable resolution can be reached with the Chinese authorities to prevent any negative impact on European dairy producers.
