By Mei Mei Chu and Nigel Hunt

BEIJING/LONDON (Reuters)

China has opened an anti-subsidy probe into imported dairy products from the European Union, escalating tensions with the bloc a day after Brussels released its revised draft decision on tariffs for China-made electric vehicles.

DAIRY

The anti-subsidy investigation on dairy announced by China’s commerce ministry on Wednesday will focus on various types of cheeses, milks, and creams intended for human consumption. This action was prompted by a complaint submitted by the Dairy Association of China and the China Dairy Industry Association on July 29, representing the domestic dairy industry.

China will examine 20 subsidy schemes from across the 27-member bloc, specifically from Austria, Belgium, Croatia, Czech Republic, Finland, Italy, Ireland, and Romania. The EU was China’s second-largest source of dairy products, accounting for at least 36% of the total import value in 2023, with New Zealand being the largest. In 2023, the EU exported 1.7 billion euros ($1.84 billion) in dairy products to China, down from 2 billion euros in 2022.

PORK

In June, China announced an anti-dumping investigation focusing on pork intended for human consumption, including fresh, cold, and frozen cuts, as well as pig intestines, bladders, and stomachs. This complaint was filed by the China Animal Husbandry Association on behalf of the domestic pork industry.

If Beijing restricts imports from the EU, suppliers from South America, the U.S., and Russia might gain market share. The EU accounted for over half of the approximately $6 billion worth of pork that China imported in 2023, with Spain contributing a quarter.

BRANDY

In January, China initiated an anti-dumping investigation on brandy imported from the EU, mainly targeting France, as nearly all European brandy exported to China is made in France. The investigation will focus on brandy in containers of less than 200 liters (44 British gallons).

PLASTIC

In May, Beijing launched an anti-dumping probe into POM copolymers, a type of engineering plastic, imported from the EU, U.S., Japan, and Taiwan.