China has launched an anti-subsidy investigation into dairy imports from the European Union, marking a significant escalation in trade tensions between the two economic powers. The probe, announced by China's Ministry of Commerce, targets dairy products including fresh and processed cheese from EU countries such as Ireland, Austria, Italy, Belgium, and Finland. This move comes in response to the European Union's recent decision to impose five-year import duties of up to 36% on Chinese electric vehicles and follows the EU's EV probe update. The investigation, which began on August 21, 2024, is expected to conclude within a year. It follows a similar anti-dumping probe on the EU pork industry initiated by China in mid-June. The China Dairy Association and China Dairy Industry Association requested the investigation, highlighting the ongoing tit-for-tat trade dispute between China and the EU. China has also warned of countermeasures.
