China’s recent decision to open investigations into imported dairy products from the European Union has led to increased tensions between the two economic blocs. This move comes shortly after Brussels revealed its revised draft decision regarding tariffs on electric vehicles manufactured in China. The probe into EU dairy imports is just one of the many investigations currently underway by China’s commerce ministry.
Dairy Industry Investigation
The anti-subsidy investigation initiated by China’s commerce ministry will specifically target various types of cheeses, milks, and creams intended for human consumption. This investigation was prompted by a complaint filed by the Dairy Association of China and the China Dairy Industry Association on behalf of the domestic dairy sector. China plans to scrutinize 20 subsidy programs from multiple EU countries, including Austria, Belgium, Croatia, Czech Republic, Finland, Italy, Ireland, and Romania. The EU is the second-largest source of dairy products for China, accounting for a substantial percentage of total imports in recent years.
In addition to the dairy industry, China has also launched an anti-dumping investigation into pork imports from the EU. This investigation focuses on a variety of pork products, including fresh, cold, and frozen cuts, as well as pig intestines, bladders, and stomachs. The complaint was lodged by the China Animal Husbandry Association on behalf of the domestic pork sector. If imports from the EU are restricted, suppliers from South America, the U.S., and Russia may gain market share in China. The EU currently supplies more than half of China’s pork imports, with Spain, the Netherlands, and Denmark being major exporters to the Chinese market.
Despite finding evidence of brandy being sold below market prices in China, the country’s commerce ministry has decided not to impose provisional tariffs on imported brandy from the EU. This investigation, initiated in January, specifically targeted EU brandy makers, impacting French companies like Remy and Pernod. The French cognac industry dominates China’s EU brandy imports, raising concerns within the sector. Some industry experts believe that this probe may be linked to broader trade disputes rather than just market practices.
Another noteworthy investigation launched by China is an anti-dumping probe into POM copolymers, a type of engineering plastic, imported from the EU, U.S., Japan, and Taiwan. This move indicates China’s commitment to addressing unfair trade practices across various industries and regions. The outcome of this investigation could have significant implications for the global plastic industry and may lead to trade disruptions between China and the countries under investigation.
China’s recent anti-subsidy probes into EU imports demonstrate the country’s proactive stance on addressing alleged unfair trade practices. These investigations not only impact specific industries like dairy, pork, brandy, and plastic but also have broader implications for international trade relations. As tensions between China and the EU escalate, it is important for both parties to engage in constructive dialogue to resolve trade disputes and foster a stable global trading environment.
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