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China has launched an anti-dumping investigation into imported European dairy merchandise, within the newest escalation of a commerce dispute with the EU.
The investigation comes a day after the European Fee printed a collection of extra levies on Chinese language electrical automobile imports, regardless of opposition from Beijing.
The Chinese language commerce ministry stated on Wednesday that its probe into EU dairy imports was prompted by complaints from home producers over European subsidies. In line with a press release, the investigation will cowl “certain products” together with lotions and cheeses.
The transfer marked Beijing’s strongest retaliation but in opposition to Brussels’ EV tariffs. China has already opened anti-dumping probes into French cognac and EU pork imports and has lodged a criticism on the World Commerce Group.
The bloc’s chief diplomat, Josep Borrell, stated at an occasion in Spain this week that the EU “mustn’t be naive” however {that a} commerce struggle was “maybe . . . unavoidable”.
The European Fee stated that Brussels “takes note” of China’s resolution to launch an anti-subsidy probe into sure dairy merchandise and would analyse the process “very closely”.
“The commission will firmly defend the interests of the EU dairy industry . . . and intervene as appropriate to ensure that the investigation fully complies with relevant WTO rules,” it stated.
The European Union Chamber of Commerce in China stated Beijing’s motion “should not be considered a surprise”.
“Regrettably, the use of trade defence instruments by one government is increasingly being responded to seemingly in kind by the recipient government,” the chamber stated, including that it hoped the investigation would “be conducted fairly and transparently”.
European dairy exports to China had been valued at about €1.8bn final 12 months, down from €2bn the 12 months earlier than, in accordance with European Fee commerce information, and accounted for about 9.5 per cent of the EU’s complete dairy exports.
The Chinese language dairy trade our bodies claimed that imported EU dairy merchandise had benefited from a complete of 20 subsidy programmes. Germany is the bloc’s largest producer of milk, butter and cheese, adopted by France.
The market share of imports in China’s toddler components market, the place competitors has elevated and rules have been tightened, fell from 51 per cent in 2019 to 44 per cent in 2023, in accordance with Dutch financial institution Rabobank.
China’s declining beginning fee has additionally compelled home and international firms to push into new merchandise within the nation, comparable to these focusing on older customers.
Imports of milk powder and fluid milk have additionally fallen this 12 months due to larger home manufacturing, in accordance with estimates from the US Division of Agriculture in Might.
“Growth in raw milk production continues to outpace consumption, creating an oversupply in the Chinese market,” the report stated.
Extra reporting by Gloria Li in Hong Kong
