China opens investigation into EU's dairy trading practices
China is opening an investigation into European Union trade practices that it considers unfair relating to imported dairy products, against a backdrop of tensions with Brussels over electric vehicles from China.
The investigation covers products such as fromage frais, blue cheese and certain milks and creams and targets a number of subsidies granted under the EU’s common agricultural policy.
“The Ministry of Commerce has decided to open an anti-dumping investigation into certain dairy products imported from the European Union with effect from 21 August 2024,” the ministry said in a statement on Wednesday.
It comes the day after the EU confirmed its intention to impose a five-year surtax on electric cars from China, including those made by Tesla, which has a factory in Shanghai.
Decision criticised
The EU believes the prices of Chinese vehicles are artificially low, due to state subsidies that distort the market and undermine the competitiveness of European manufacturers. These surcharges, which can be as high as 38 per cent, replace the temporary taxes imposed at the beginning of July.
Beijing criticised the decision and has threatened Brussels with retaliation several times in recent months. The investigation into dairy products is due to be concluded within a year but could be extended by six months, according to the ministry’s statement.
The EU exported 1.7 billion euros worth of dairy products to China last year. In 2022, the value was just under 2.1 billion euros.
In January, China announced that it was investigating an alleged competition infringement involving wine spirits, such as cognac, imported from the EU and France in particular. In June, it launched an anti-dumping investigation into imports of pork products from the EU, produced mainly in Spain, France, the Netherlands and Denmark.
A customer picks up cheese imported from Europe at a supermarket in Beijing, 21 August 2024 © PHOTO PEDRO PARDO / AFP
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