China has launched an investigation into subsidies linked to dairy imports from the EU in what has been widely interpreted as the latest tit-for-tat in an ongoing trade spat.
The announcement of the probe came just a day after the EU published a series of additional levies on Chinese electric vehicle imports.
The row has already seen China launch an anti-dumping investigation into certain pork and pig by-products originating from the EU from 1 January 2023 to 31 December 2023.
‘Dumping’ is defined as the practice of selling goods in an importing country at a significantly lower price than in the producer country.
A news story carried on China’s official state news agency Xinhua today (21 August), said the country’s Ministry of Commerce had now extended its investigations to look at certain dairy products imported from the EU.
It is understood China accounted for about 9.5% of total European dairy exports last year.
Xinhua said the investigation has been launched in response to an application submitted by the Dairy Association of China and the China Dairy Industry Association on behalf of the domestic industry in July.
The news service reported that the ministry requested a consultation with the EU over the probe on 7 August, which was held a week later.
“The investigation will look into certain dairy products originating from the EU, including fresh cheese, curd and blue cheese and the period to be probed is set between April 1, 2023 and March 31, 2024,” Xinhua’s report said.
It will also examine any damage done to related Chinese industries from 1 January 2020 to 31 March 2024.
“A total of 20 EU subsidies will be investigated, including those from the bloc's Common Agricultural Policy (CAP), as well as subsidy programmes initiated by EU members such as Ireland, Austria, Belgium and Italy,” Xinhua said.
The probe is expected to end before 21 August but may be extended for half a year “under special circumstances”.
A similar caveat was put in place for the length of the pork probe.
Responding to a Just Food query, European Commission spokesperson Olof Gill said: “The Commission takes note of the decision by the government of China to initiate an anti-subsidy investigation on imports of certain dairy products from the EU.
“The Commission will now analyse the application and will follow the proceeding very closely, in coordination with EU industry and member states.
“The Commission will firmly defend the interests of the EU dairy industry and the CAP and intervene as appropriate to ensure that the investigation fully complies with relevant WTO [World Trade Organization] rules."
Alexander Anton, secretary general of industry body the European Dairy Association (EDA), said: "The Chinese authorities have started a first consultation over a complaint initiated by the Chinese dairy sector about countervailing subsidy programmes supporting EU dairy, basically via the CAP, like eco-scheme payments or young farmers support measures - probably like the 2013 subsidy procedure against EU wine exports to China.
"While we are confident on the WTO conformity of the overall CAP toolbox for the support of EU agriculture, we will, of course, work closely with the competent EU services, the Chinese authorities, and our Chinese dairy partners to help to clarify within the consultation process at least the dairy part of the rather complex trade relation between China and the EU today.
"We trust that the EU & China will find a constructive way to resolve any bilateral disputes, as has happened in the past over other matters."
