The trade dispute between Brussels and Beijing is escalating. China is making serious accusations against the EU and is now targeting European products.
China has announced an anti-subsidy investigation into imported dairy products from the European Union. Certain goods such as fresh or processed cheese are affected, the Ministry of Commerce in Beijing announced. The authority set the provisional investigation period at one year until August 21, 2025.
The investigation is likely to be a counter-reaction by Beijing to the punitive tariffs imposed by the EU on Chinese electric cars. On Tuesday, Brussels provided further information on the planned additional tariffs, which was met with great criticism in China. In the months before, the EU Commission had investigated unfair subsidies for electric cars from China, which, in the opinion of the EU authorities, distorted the market in Europe.
EU Chamber calls for transparency
The European Chamber of Commerce in China was not surprised by Beijing’s actions. In a statement, the lobby group for EU companies expressed regret that trade protection measures taken by one side were increasingly being reciprocated by the other side. The chamber hoped that China’s investigation would be fair and transparent and urged its affected member companies to cooperate.
According to official data from Brussels, the EU exported dairy products worth 1.7 billion euros to China last year. In 2022, exports in this category reached a value of just under 2.1 billion euros. In China’s supermarkets, for example, imported milk from Germany can often be found, which also enjoys a good reputation in the Far East.
Other products in the crosshairs
This is not the first investigation into European products. In January, the Ministry of Commerce announced an investigation into brandy. The main producers affected were from France. In July, the authority announced that it would investigate pork and its by-products imported from the EU.
With regard to the EU’s additional tariffs on Chinese electric cars, Beijing speaks of protectionism. Brussels is ignoring facts, disregarding World Trade Organization rules and will only harm itself and others, said Foreign Ministry spokeswoman Mao Ning in Beijing.
Source: Stern
