China Targets EU Dairy Subsidies
In a significant escalation of trade tensions, China has initiated an anti-subsidy investigation into dairy products imported from the European Union. Announced by the Chinese Ministry of Commerce, the probe will scrutinize subsidies on various EU dairy products, including fresh and processed cheese, milk, and cream. This investigation, driven by two state-backed industry groups, follows discussions with the European Commission and is expected to conclude within 12 to 18 months.
EU Tariffs on Chinese Electric Vehicles Spark Retaliation
China’s move is widely seen as a retaliatory response to the European Union’s recent decision to impose tariffs of up to 36.3% on Chinese-made Battery Electric Vehicles (BEVs). The EU’s anti-subsidy inquiry into BEVs found that Chinese subsidies provided an unfair advantage, threatening the EU’s domestic industry. This investigation is part of a broader EU effort to address the impact of Chinese subsidies on industries like wind turbines and solar panels.
Previous Tit-for-Tat Measures
This latest investigation is not the first instance of retaliatory actions between China and the EU. Beijing has previously launched anti-dumping investigations into various EU products, including pork, liquor, and chemical goods, as well as a probe into public procurement of medical devices. The ongoing trade dispute highlights the growing tension between the two economic powers as they navigate complex trade relations.
EU Vows to Defend Dairy Industry
The European Commission has responded to China’s investigation by pledging to defend the interests of the EU dairy industry. Commission spokesperson Olof Gill stated that the Commission would closely monitor the proceedings and ensure that the investigation complies with World Trade Organization (WTO) rules. The EU remains committed to protecting its Common Agricultural Policy (CAP) and will coordinate with member states to address the challenges posed by China’s actions.
Borrell Cautions Against Escalating Trade War
Amid rising tensions, EU High Representative for Foreign Policy Josep Borrell warned against a “systematic confrontation” with China. Speaking at the “Quo Vadis Europa?” conference, Borrell emphasized the importance of avoiding a full-scale trade war, although he acknowledged that such a conflict might be inevitable. He also highlighted the need for the EU to assert its own trade interests, especially in situations where US actions against China could inadvertently harm European markets.
SOURCE: Ref Image from Irish Farmer Journal
Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.