August 22, 2024

 

China launches probe into EU dairy subsidies amid escalating trade tensions

 
 


China said that it will initiate an investigation into European Union (EU) subsidies for certain dairy products imported into the country, after the EU disclosed plans to impose five-year import duties of up to 36% on Chinese electric vehicles, AFP News reported.

 

In a statement posted on its website, China Ministry of Commerce said it will initiate an anti-subsidy investigation on imported relevant dairy products originating in the European Union from August 21, 2024.

 

The investigation will focus on various imported dairy products, including fresh cheese, curd, blue cheese, as well as certain milk and cream products. The ministry clarified that the probe would examine several subsidies provided under the EU's Common Agricultural Policy (CAP).

 

The investigation is expected to conclude within a year but may be extended by an additional six months if necessary.

 

This latest trade measure follows the European Commission's announcement regarding its intention to implement five-year import duties of up to 36% on Chinese electric vehicles. The EU's move is part of an ongoing trade dispute over state subsidies that Brussels claims are unfairly disadvantaging European car manufacturers.

 

Last month, the EU imposed provisional tariffs on electric vehicles imported from China, adding to the existing 10% duties, following an anti-subsidy investigation. This action prompted Beijing to respond with investigations into various EU trade practices.

 

In addition to the dairy probe, China is also conducting several ongoing inquiries into EU practices. These include an anti-dumping investigation into pork imports, which began in June, and a formal probe into EU policies following the bloc's anti-subsidy investigation targeting Chinese transportation and green energy companies.

 

-      AFP News

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