China Hits EU Dairy Products with Additional Tariffs
China's Commerce Ministry unveiled punitive duties ranging from 21.9% to 42.7% on EU dairy products after investigators concluded European state subsidies undermined Chinese producers and violated fair trade principles.
Ministry officials declared preliminary findings from their probe revealed EU dairy imports "benefited from subsidies, causing harm to China's domestic industry," with investigators establishing "a causal link has been established between the subsidies and the resulting harm."
The aggressive countermeasures target a broad spectrum of European cheese varieties and dairy goods flowing into Chinese markets.
Beijing's Commerce Ministry initiated the subsidy examination in August 2024 after the China Dairy Association and China Dairy Industry Association filed a formal complaint representing domestic manufacturers threatened by European competition.
Investigators scrutinized specific dairy categories—fresh cheese, curd, and Roquefort cheese—imported from EU member states during a critical twelve-month window spanning April 1, 2023, through March 31, 2024. Officials assessed financial damage inflicted on Chinese dairy producers throughout a broader four-year timeframe covering 2020 to 2024.
The comprehensive investigation examined 20 distinct subsidy mechanisms embedded within the EU's Common Agricultural Policy framework, alongside individual support programs administered by Ireland, Austria, Belgium, and Italy.
Originally scheduled for completion this August, authorities extended the investigation timeline by six months due to "the complexity of the case and related regulations," ministry documents confirmed.
Beijing's dairy tariffs follow an established pattern of aggressive trade enforcement. On June 17, 2024, China launched separate price-dumping investigations targeting pork and pork by-products from European suppliers.
After completing an eighteen-month examination, authorities announced earlier this month that additional customs duties between 4.9% and 19.8% would burden these pork products for five years, significantly impacting European meat exporters' access to lucrative Chinese consumer markets.
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