China Expands EU Dairy Subsidy Investigation Amid Trade Tensions

China announced it will broaden its anti-subsidy probe regarding dairy imports from the EU to assess additional subsidy programs, particularly in Denmark, France, Italy, and the Netherlands. This development follows heightened EU tariffs on Chinese electric vehicles, prompting efforts for a diplomatic resolution beneficial to both parties.

In a move to intensify scrutiny over its trade dealings with Europe, China disclosed on Friday its intent to extend the scope of its anti-subsidy investigation into dairy imports from the European Union. The expanded probe now includes new subsidy programs from Denmark, France, Italy, and the Netherlands.

This development emerges as a reaction to the European Union's tariff plan on Chinese-manufactured electric vehicles, with tariffs reaching up to 45.3% as of late October. China's decision underscores its emphasis on finding a mutually acceptable solution that benefits the electric vehicle industries on both sides.

The Chinese commerce ministry confirmed receiving input from the domestic dairy sector, prompting them to question EU firms about these additional programs. The consultations with EU representatives aimed to ensure transparency and address concerns from both the EU and China, as the trade relations between these major economies continue to evolve.

(With inputs from agencies.)