China: Anti-subsidy investigation against imported European dairy products

On August 21, 2024, the Chinese Ministry of Commerce launched an anti-subsidy investigation against imported European dairy products. The authority set the provisional investigation period at one year until August 21, 2025. However, the investigation period can be extended if necessary.

The focus of the study is on the common agricultural policy of the EU states as well as national subsidy programs of Ireland, Austria, Belgium, Italy, Croatia, Finland, Romania and the Czech Republic.

The anti-subsidy investigation only relates to certain product groups. The figures illustrate the extent of affected exports from Austria to China in 2023:

• 0401 Milk and cream, not thickened and unsweetened: export volume of approx. EUR 4 million
• 040610 Fresh cheese, non-fermented (quark): export volume of approx. 3.2 million euros
• 040620 Cheese of all kinds, grated or powdered: export volume of approx. EUR 5.4 million
• 040630 Processed cheese: export volume of approx. 2.3 million euros
• 040640 Cheese with mold formation in the dough: No export to China.
• 040690 Other cheeses: No export to China.

In the years from 2020 to 2023, exports of milk and dairy products from Austria to China fell significantly. While dairy products worth 53 million euros were exported in 2020, the value fell drastically in the following years: in 2021, products worth 38 million euros (-28%) were exported, and in 2022 only 28.4 million euros (-25%). In 2023, the export value fell further to 19.3 million euros (-32%).

Interested parties or countries (regions) have the opportunity to submit an application to participate in the anti-subsidy investigation to the Bureau of Trade Remedy Investigation of the Ministry of Commerce within 20 days. The application should submit information in accordance with the reference registration form, including basic information on the identity, quantity and value of the affected goods exported or imported to China, as well as data on the production of like goods. The relevant form can be downloaded from the website of the Trade Remedy and Investigation Bureau of the Ministry of Commerce.

This measure is likely to be seen as a further reaction by Beijing to the punitive tariffs imposed by the EU on Chinese electric cars, following the anti-dumping investigation into European pork and by-products.

The European Chamber of Commerce in China was not surprised by China’s actions. In a statement, the lobby group for European companies expressed its regret that trade protection measures are increasingly being reciprocated by both sides. The Chamber hopes that China’s investigation will be fair and transparent and called on its affected member companies to cooperate with the investigation.

Do you have any further questions?

The Foreign Trade Center Beijing is happy to assist you by phone at +86 10 8527 5050 or by email at [email protected].

Stand: 27.08.2024