The response was swift. Beijing announced on Wednesday, August 21, the opening of an investigation into alleged subsidies granted by the European Union to certain dairy products, in a context of tensions with Brussels over surcharges on electric vehicles from China.
“The Ministry of Commerce has decided to initiate an anti-dumping investigation into certain dairy products imported from the European Union as of August 21, 2024,” it said in a statement. The investigation covers products such as fresh and sour milk cheese, blue cheese, and certain milk and cream products, the Ministry of Commerce said. The procedure targets a number of subsidies granted under the EU’s Common Agricultural Policy (CAP).
On Tuesday, the European Union (EU) confirmed its intention to impose a five-year surcharge on electric cars from China, including those from the American manufacturer Tesla, which has a factory in Shanghai. Brussels wants to add a surcharge of up to 36% to the 10% tax already in place. These customs duties will apply by the end of October, subject to the approval of the 27, who are divided on the subject. They will then replace provisional taxes decided at the beginning of July, and of up to 38%.
Tensions with Brussels
Beijing, which has criticized the move, has repeatedly threatened retaliation in recent months. The dairy investigation is to be concluded within a year but could potentially be extended by six months, the ministry said in a statement.
Beijing had already announced in January that it was investigating an alleged anti-competitive infringement of wine spirits, such as cognac, imported from the EU and in particular from France, which had given rise to the Brussels investigation. In June, it also launched an anti-dumping investigation into imports of pork and pork products from the European Union, goods mainly produced in Spain, France, the Netherlands and Denmark.