China opened an anti-subsidy probe into dairy imports from the European Union on Wednesday, stepping up tension with the bloc a day after Brussels published its revised tariff plan for China-made electric vehicles.
The EU on Tuesday revised its proposed punitive duties on imports of Chinese EVs to 36.3% from an initial planned duty of 37.6%, but fell short of abandoning them, as Beijing had called on Brussels to do.
The revision drew rebuke from China’s commerce ministry, which in response said it is “firmly opposed to and highly concerned” about the findings, and vowed to take all necessary measures to protect Chinese firms.
The anti-subsidy investigation on dairy announced by China’s commerce ministry on Wednesday, the latest in a series of Chinese probes this year into EU agricultural goods, will focus on various types of cheeses, milks and creams intended for human consumption.
Complaint by Dairy association of China
It was prompted by a complaint submitted by the Dairy Association of China and the China Dairy Industry Association on July 29 on behalf of the domestic dairy industry, the ministry said.
China will examine 20 subsidy schemes from across the 27-strong bloc, specifically those from Austria, Belgium, Croatia, Czech Republic, Finland, Italy, Ireland, and Romania, it said in a statement.
European Commission spokesperson Olof Gill said the bloc “will firmly defend the interests of the EU dairy industry and the Common Agricultural Policy, and intervene as appropriate to ensure that the investigation fully complies with relevant World Trade Organization rules.”
