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China Prolongs EU Dairy Anti-Subsidy Investigation
China has extended its anti-subsidy investigation into European Union dairy products until February 2026, citing case complexity. The Beijing Commerce Ministry announced the extension on Monday, postponing the original conclusion date.
Products Under Scrutiny
The probe covers select cheese varieties, including both fresh and processed products. This investigation began in August 2024 and is widely viewed as retaliation against EU tariffs on Chinese electric vehicles.
Escalating Trade Tensions
This dairy investigation follows similar Chinese actions targeting EU brandy and pork exports. Beijing accuses Brussels of violating international trade rules through its EV tariffs, while the European Commission maintains these duties counter excessive Chinese state subsidies.
Diplomatic Context
The trade disputes persisted despite last month's high-profile Beijing summit celebrating 50 years of EU-China relations. European Commission President Ursula von der Leyen and European Council President António Costa attended meetings with Chinese President Xi Jinping, but failed to achieve breakthroughs on trade issues.
Economic Implications
The extended probe threatens €1.5 billion in annual EU dairy exports to China. Industry analysts warn prolonged trade tensions could disrupt global supply chains and impact consumer prices in both markets.
