The trade war for dairy products began at the insistence of Chinese dairy producers and mainly because of high European tariffs on electric car imports from China
Beijing will investigate whether manufacturers of dairy products in the European Union receive unfair state subsidies. This was learned from an announcement by the Ministry of Commerce on China as of today (August 21) that Chinese dairy producers have requested the investigation, citing 20 different subsidy programs that could benefit the EU dairy industry. Aid ranges from financial support for farm equipment and additional income for young farmers to environmental and administrative subsidies, CNN reported.
An initial review of the evidence found sufficient grounds for an anti-subsidy investigation, the Commerce Department added. It is noted that the investigation could take up to 18 months.
The EU is among the largest exporters of dairy products in the world. Britain and the United States are the top two importers of EU butter and cheese, with China in third and eighth place respectively.
The announcement comes a day after the EU confirmed it would press ahead with additional tariffs on most electric vehicles imported from China.
Beijing and Brussels have been embroiled in a trade dispute for most of the past year after the EU launched an investigation into China’s “unfair” state support for electric car makers last September. The EU is also investigating China’s support for wind turbine companies.
China, in turn, has launched anti-dumping investigations into brandy and pork products from the EU.
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