China has intensified its trade standoff with the European Union, this time targeting the heavily subsidized dairy industry. In a significant move, Beijing has launched an anti-subsidy investigation into EU dairy imports, signaling a new phase in the ongoing trade disputes between the two economic powerhouses. The probe was initiated at the request of two government-backed industry associations representing Chinese dairy producers, according to an announcement from China's Ministry of Commerce.
The investigation, which follows discussions between Chinese officials and EU representatives, is expected to take up to a year to complete. However, the Ministry indicated that the process could be extended by an additional six months if necessary.
This development comes on the heels of the EU's own anti-subsidy probe into Chinese-made electric vehicles (EVs), where proposed tariffs on EV imports from China were recently revised. The unfolding situation points to a deepening of trade tensions, with both sides appearing to dig in on their respective positions.