China's new "blow", tensions with EU have reached dairy products

On November 22, China announced the expansion of its anti-subsidy investigation into dairy products imported from the European Union (EU).

China expands investigation into EU milk subsidy program. (Source: Getty Images)

The investigation covers EU subsidy programmes and those of Denmark, France, Italy and the Netherlands.

Earlier in August, Beijing launched an investigation into some cheese, milk and cream products imported from the 27-member bloc.

The move is seen as a response to the EU's plans to impose tariffs on electric cars made in China.

Beijing's move adds to tensions over subsidies that have ranged from electric cars to pork and cognac.

With the 27-member bloc’s new tariffs of up to 45.3% on electric vehicles imported from Beijing coming into effect on October 30, the world’s second-largest economy has called on several EU member governments to persuade the European Commission (EC) to come up with a solution acceptable to the entire electric vehicle industry.

On November 22, China's Ministry of Commerce said that the expansion of the investigation was made after a preliminary review and taking into account complaints from EU member states as well as consultations with representatives of the bloc.

The scope of expansion includes programs such as agricultural promotion, insurance and investment subsidies.

China currently imports dairy products from several European countries, including the Netherlands and France. However, its largest dairy supplier is New Zealand.

In recent years, the country's milk imports have gradually decreased due to increased domestic milk production as well as the impact of the domestic economic downturn.

Source: https://baoquocte.vn/trung-quoc-ra-don-moi-cang-thang-voi-eu-da-tien-den-san-pham-sua-294750.html