China Expands Trade Scrutiny on EU Imports Amid Dairy, Brandy, and Pork Probes

China has widened its investigation of imported EU products to include anti-subsidy checks on cheese, milk, and cream, alongside existing anti-dumping probes on pork and brandy. This move follows the EU's announcement of new tariff plans on Chinese-made electric vehicles. France is particularly at risk due to its substantial exports.

China has broadened its probe into imported EU products, now targeting cheese, milk, and cream with anti-subsidy investigations. This escalation follows anti-dumping checks on pork and brandy. Beijing announced this initiative on Wednesday, just one day after the EU released revised tariffs on Chinese-made electric vehicles (EVs).

The motive behind Beijing's actions stems from suspicions that EU dairy imports may benefit from undue subsidies. Simultaneously, the EU is contemplating imposing tariffs of up to 36.3% on Chinese-made EVs, pending a vote in October. The proposed tariffs garnered support from France, Italy, and Spain in July, whereas Germany, Finland, and Sweden abstained.

France could suffer the most, having exported $211 million worth of the dairy products now under investigation last year. Customs data indicates significant sales from Italy, Denmark, the Netherlands, and Spain, each facing similar scrutiny. France also dominates China's brandy imports and some pork, heightening its exposure. Other major pork exporters like Denmark, the Netherlands, and Spain are similarly pressured by the probes. Potential future investigations may target European large-engine gasoline cars, significantly impacting Germany's $1.2 billion export market to China.

(With inputs from agencies.)