China's Trade Tensions with EU: Dairy, Brandy, and EV Tariffs

China has launched an anti-subsidy investigation into EU dairy imports, adding to existing probes into EU brandy and pork. This move follows the EU's revised tariff plan for Chinese electric vehicles. The probe could impact major EU exporters such as France, Spain, the Netherlands, and Denmark.

China has initiated an anti-subsidy investigation into European Union dairy product imports, expanding its trade scrutiny which previously targeted EU brandy and pork. The timing of this move is notable, coinciding with the EU's release of a revised tariff scheme for electric vehicles manufactured in China.

Beijing's evaluation now encompasses whether these dairy imports are being sold below market rates, raising concerns for member states like France, Spain, the Netherlands, and Denmark. These countries are now under intensified pressure as China considers imposing tariffs as high as 36.3% on Chinese EV imports before an upcoming October vote.

France, in particular, could suffer substantial economic losses, having exported $211 million worth of dairy last year. Collectively, the ongoing trade investigations pose significant risks to the EU's largest exporters of dairy and pork. As tensions rise, the future economic relationship between China and the EU remains uncertain.

(With inputs from agencies.)