China digs deeper into EU dairy imports

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China widened its anti-subsidy probe on dairy imports from the European Union (EU). The investigation into the EU dairy imports to China launched in August and has been tied to the EU's tariffs on Chinese electric vehicle (EV) imports into Europe. 

China's investigation now includes additional EU subsidy programs on dairy imports, including those in Denmark, France, Italy, andthe Netherlands. China's Ministry of Commerce (MOC) recently added questions about additional subsidy programs in questionaries it sent to EU firms under investigation. 

"On November 19, the investigations authorities held consultations with EU representatives regarding the new programs added," said the MOC. 

The dairy anti-subsidy probe launched after China's MOC accepted an application requesting an investigation into subsidy schemes for dairy products exported from a few EU member states. The EU is China's second-largest source of dairy products after New Zealand, reported Reuters. 

Tensions between China and the EU have increased since the European Commission launched an anti-subsidy probe on China-made EVs imported into Europe. The probe lasted a year and resulted in enough EU member states voting to impose higher tariffs on China-made EV imports. On October 30, the EU imposed tariffs as high as 45.3% on Chinese EVs.

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