China Hits Back at EV Tariffs with European Dairy Probe: Escalation of Trade Disputes
China Responds to EV Tariffs
In a notable reaction to the European Commission's new tariffs on Chinese electric vehicles, China has initiated an anti-dumping investigation into certain European dairy products. This investigation arises from complaints by domestic manufacturers regarding subsidies provided to European competitors.
Details of the Investigation
- The investigation will cover specific products, including creams and cheeses.
- This countermeasure represents China's strongest response to EU trade policies.
Further, Beijing has opened similar probes into imports of French cognac and EU pork, alongside a complaint to the World Trade Organization.
EU's Reaction
Josep Borrell, the EU's chief diplomat, emphasized that while the bloc must be vigilant, a trade war may be unavoidable. The European Commission has acknowledged China's investigation and pledged to defend EU dairy interests.
- EU dairy exports to China were valued at approximately €1.8 billion last year.
- The market share for imported dairy in China has diminished significantly.
With China’s declining birth rate impacting the demand for infant formula, trends indicate a shift for both domestic and foreign producers toward appealing to older consumers.
Future Implications
As China's dairy production continues to increase, the oversupply in the market raises questions about future trade dynamics. The outcome of the ongoing investigations could significantly influence the trajectory of international trade relations between China and the EU.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.