China Launches Anti-Subsidy Probe into EU Dairy Imports - What You Need to Know
China has recently opened an anti-subsidy investigation into imported dairy products from the European Union, escalating tensions with the bloc following a draft decision on tariffs for China-made electric vehicles. This move has significant implications for industries such as dairy, pork, brandy, and plastic.
The probe into EU dairy imports will focus on various cheeses, milks, and creams for human consumption. China will examine 20 subsidy schemes from EU countries like Austria, Belgium, and Italy. The EU is the second-largest source of dairy products for China, with at least 36% of imports coming from the bloc.
In addition, an anti-dumping investigation on pork products from the EU is underway, with potential market share gains for suppliers from South America, the U.S., and Russia. The EU accounts for over half of China's $6 billion pork imports, with Spain, the Netherlands, and Denmark being key exporters.
On the other hand, China has decided not to impose provisional tariffs on brandy imports from the EU, despite concerns about below-market pricing. This decision has implications for French cognac producers, as the industry makes up most of China's EU brandy imports.
Furthermore, China launched an anti-dumping probe into POM copolymers, a type of engineering plastic, imported from the EU, U.S., Japan, and Taiwan. This move could impact the plastic industry and trade relations between the countries involved.
In conclusion, the ongoing investigations and decisions made by China regarding EU imports have significant implications for various industries and trade relations. It is essential for businesses and investors to monitor these developments closely to assess potential impacts on their operations and finances.