China responds with reciprocal investigation into dairy imports from EU

August 21, 2024 TruthUSA

The decision announced by China’s commerce ministry came just a day after the EU indicated it intended to place up to 36.6 percent tariffs on China-made EVs.

On Wednesday, the Chinese regime initiated an anti-dumping investigation on dairy products imported from the European Union, in response to the EU’s tariff proposals. This move has escalated trade tensions between Beijing and the 27-nation bloc.

The investigation on imported dairy products, including fresh and processed cheeses, and certain milk and cream products from the EU, will commence on Aug. 21, according to a statement by China’s Ministry of Commerce. The investigation is expected to last for a year, with a possible extension of six months, as per the ministry.

The Dairy Association of China and China Dairy Industry Association, two state-backed industry groups, officially requested the investigation into dairy products imported from the EU on July 29, the ministry confirmed.

A total of 20 subsidy projects from various EU countries will be examined. The member states listed in the ministry’s statement include Austria, Belgium, Croatia, Czech Republic, Finland, Italy, Ireland, and Romania.

In response, the European Commission stated that they “took note” of China’s new probe.

The decision announced by China’s commerce ministry came just a day after the EU signaled its intention to impose tariffs of up to 36.6 percent on electric vehicles (EVs) shipped from China.

According to Brussels, the additional duties are deemed necessary to create a level playing field in response to the significant subsidies given by the Chinese regime to its domestic EV producers, leading to unfair trade practices that could harm the EU market by artificially reducing EV prices.

The EU’s anti-subsidy investigation on China-made EVs is projected to conclude in two months. If the majority of the EU’s 27 member states support the plan in October’s vote, the proposed tariffs could become the definitive duties for the EU, typically remaining in effect for five years.

Sun Kuo-hsiang, a professor of international relations at Nanhua University in Taiwan, viewed Beijing’s new probe as a means to exert pressure on the EU amidst the EU’s ongoing anti-subsidy probe on China-made EVs.

Source link