China's Rising Trade Tensions: EU Dairy, Pork, Brandy Under Investigation

China has initiated an anti-subsidy investigation into imported dairy products from the European Union, heightening trade tensions. The probe targets various cheeses, milks, and creams. Additionally, investigations focus on imported pork, primarily from Spain, and brandy, mostly from France. China is also examining engineering plastics imported from the EU, U.S., Japan, and Taiwan.

China has initiated an anti-subsidy investigation into imported dairy products from the European Union, increasing friction with the bloc just a day after the EU revised its draft decision on tariffs affecting China-made electric vehicles.

The dairy probe, announced by China's commerce ministry, targets cheeses, milks, and creams intended for human consumption and comes after a complaint from the Dairy Association of China and the China Dairy Industry Association. The ministry will scrutinize 20 subsidy schemes across multiple EU countries including Austria, Belgium, and Italy, among others.

The EU is China's second-largest source of dairy products, following New Zealand, contributing to 36% of total imports in 2023. China also scrutinizes EU pork, with ongoing investigations on products such as fresh, cold, and frozen cuts, including offal, with a large share of imports from Spain, the Netherlands, and Denmark. Additionally, an anti-dumping investigation on brandy from France and POM copolymers from the EU, U.S., Japan, and Taiwan is in progress.

(With inputs from agencies.)