Beijing Extends Its Anti-Subsidy Investigation into European Dairy Imports, Escalating a Broader Trade Conflict That Puts Billions in Exports at Risk.
In a move that signals an escalation of its broader trade conflict with the European Union, China has extended its anti-subsidy probe into EU dairy imports for an additional six months. The investigation, which now runs until February 21, 2026, cites the complexity of the case. This development in dairy economics is seen by many in the industry as a retaliatory measure for the EU’s own anti-subsidy investigation into Chinese electric vehicle exports launched in 2023.
The extended investigation is part of a series of tit-for-tat trade actions between the two major economic blocs. China has initiated similar probes into other European goods, including brandy and pork, following the EU’s move on electric vehicles. While some industries, such as major cognac producers, have reached a form of settlement, the European Dairy Association is not anticipating a similar outcome due to the different structure of the agribusiness sector.
The article highlights the significant economic exposure for European producers. French industry association CEO Francois-Xavier Huard stated that producers are hoping for a political resolution to the EV issue to avoid potential duties on French dairy exports to China, which are valued at approximately €650 million annually. This demonstrates the high stakes of the trade dispute for individual nations and their key export industries.
A key piece of data journalism reveals that this extension was widely anticipated. Alexander Anton, secretary general of the European Dairy Association, said that Chinese officials had already scheduled technical visits for early September. This suggests that the extension is a planned part of the investigation process, rather than a sudden decision, and underscores the complexity of the case, which covers a range of EU cheese, milk, and cream products.
Ultimately, the trade conflict remains unresolved, creating significant market uncertainty for the international dairy community. While both sides have attempted to find common ground on other issues, an overall deal has yet to be reached. This continued tension, as one analyst notes, reflects Beijing’s ongoing hope to find a comprehensive solution to the long list of trade disputes, but in the meantime, it leaves dairy producers in a precarious and unpredictable position.
Source: eFeedLink, “China widens investigation into EU dairy imports amid ongoing trade dispute”
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