China-EU Trade War Escalates:
On Monday (December 22), the Chinese Ministry of Commerce announced that starting from December 23, temporary anti-subsidy tariffs ranging from 21.9% to 42.7% will be imposed on certain dairy products originating from the European Union. The EU condemned this decision as baseless.
The announcement from the Chinese Ministry of Commerce was made based on preliminary determinations from the anti-subsidy investigation, with the final decision subject to potential modifications.
Olof Gill, a spokesman for the European Commission, stated on Monday, “The European Commission assesses that this investigation is based on dubious allegations and insufficient evidence, rendering these measures unreasonable and unfounded.”
“We are doing our utmost to defend the rights of EU farmers and exporters, as well as the Common Agricultural Policy, against China’s unfair use of trade defense measures,” Gill said. “The European Commission has taken action at the World Trade Organization regarding China’s investigation into dairy products. The European Commission will continue to take all necessary measures to defend the interests of European producers.”
According to the announcement issued by the Chinese Ministry of Commerce, the investigated dairy products include fresh cheeses (including whey cheeses) and curd, processed cheeses (whether grated or powdered), Roquefort produced cheeses and other cheeses with veins, other unnamed cheeses, uncondensed and unsweetened or otherwise sugared cheeses and cream.
Different EU companies face varying tax rates. French dairy company Fromarsac faces a tax rate of 30%, while some companies under the Dutch cheese manufacturer FrieslandCampina are subject to a tax rate of 42.7%.
In reality, the EU exports far more cheese to countries like the UK and the US than to China. According to a report by the European Commission, China ranks as the 9th largest destination for EU cheese exports. From January to August this year, the quantity of cheese imported from the EU to China decreased by nearly 15% compared to the same period in 2024.
“The European Commission believes that China’s anti-subsidy investigation into EU dairy products is not a technical issue, but a political one,” said Alexander Anton, Secretary-General of the European Dairy Association, to Bloomberg News.
In 2023, the European Commission initiated an anti-subsidy investigation into electric cars manufactured in China, sparking tensions in EU-China trade. Subsequently, China imposed tariffs on brandy and pork imported from the EU, which were seen as retaliatory measures.