Always a reality check to me how we're squabbling over such low monetary values when it comes to agricultural products…
"In 2023, dairy exports to China reached €1.76 billion, representing over 12% of the EU’s total value in agri-food exports."https://t.co/FF9wQ0ttXs
— Nikolaus J. Kurmayer (@NKurmayer) August 21, 2024
China has launched an investigation into European dairy imports in response to the European Union’s recent decision to impose tariffs on Chinese electric vehicles (EVs). The EU alleges that Chinese EV manufacturers benefit from state subsidies, creating an uneven playing field for European competitors. China’s Ministry of Commerce announced that they will investigate whether European dairy products are being sold in the Chinese market at unfairly low prices.
China-EU Trade Rift Deepens With Probe of European Cheese—Beijing opens investigation into dairy products after EU affirms plans for high tariffs on Chinese electric vehicles@hwclarence @kimmackrael https://t.co/uqB6C7f7Nshttps://t.co/uqB6C7f7Ns
— Jonathan Cheng (@JChengWSJ) August 21, 2024
The probe will focus on allegations of dumping, which refers to exporting products at prices lower than the home market, harming the domestic industry. This move highlights the growing trade tensions between China and Europe, particularly in the automotive sector.
China’s dairy import investigation
Latest round of commodity diplomacy from Beijing hits new pain point in EV tariffs dispute:
China has launched an anti-subsidy probe on dairy imports from the EU, adding to its targets in the bloc’s agriculture industry as trade tensions percolate. https://t.co/YdDvmbvvkz— Janyce McGregor (@janycemcgregor) August 21, 2024
European manufacturers have been pushing for measures to protect their market share from the rapid expansion of Chinese EV brands. The European dairy industry could face significant challenges if China imposes tariffs or other trade barriers as a result of the investigation. Europe’s dairy exports to China represent a substantial market, and any restrictive measures could have far-reaching impacts on the industry.
Analysts believe that this escalation could lead to further retaliatory measures, affecting a wide range of industries beyond automobiles and dairy, impacting the broader economic ties between China and Europe. As the situation develops, it remains to be seen what specific actions China will take if it finds evidence of dumping in European dairy exports. Both sides are closely watching the outcomes of these probes, which will likely shape the future of trade relations between the two economic giants.
