China's Dairy Probe Escalates EU Trade Tensions

China has launched an anti-subsidy investigation into dairy imports from the European Union, escalating tensions following the EU's revised tariff plan for Chinese-made electric vehicles. The probe, prompted by the Dairy Association of China, focuses on various dairy products and includes an examination of 20 subsidy schemes across multiple EU countries.

China has initiated an anti-subsidy probe into European Union dairy imports, heightening trade tensions following the EU's revised tariffs on Chinese-made electric vehicles. This investigation, announced by China's commerce ministry, aims to scrutinize various types of dairy products, including cheeses, milks, and creams.

The probe responds to a complaint by the Dairy Association of China and targets subsidy schemes in 27 EU countries. Ireland, the largest EU dairy exporter to China, is significantly affected. European Commission spokesperson Olof Gill stated that the EU will defend its dairy industry and ensure the investigation complies with WTO rules.

With the EU being China's second-largest dairy supplier, the investigation could impact trade relations further. Amid ongoing anti-dumping probes and economic pressures, both sides are navigating a delicate trade balance.

(With inputs from agencies.)