China launches investigation into imports of dairy products from the EU

(Patria) - European milk and cheese producers could become the latest victims in the trade war between the EU and China, writes Associated Press (AP), as reported by RSE.

China's Ministry of Commerce announced yesterday that it is launching an investigation into subsidies provided by EU member states for dairy products, which could lead to tariffs on their exports to China.

The announcement came a day after the EU published a draft decision on finalizing tariffs on electric vehicles made in China, following up on provisional tariffs announced last month. The Chinese government and automakers condemned the move.

"The investigation into dairy products will cover a range of products, including fresh and processed cheese, blue cheese, and milk," the Chinese Ministry of Commerce said in a statement.

Subsidies under the EU's Common Agricultural Policy, as well as subsidies provided by eight EU countries, including Italy, Finland, and Croatia, will be examined.

China's Ministry of Commerce has previously launched investigations into European exports of spirits and pork. The investigations have raised fears of a trade war.

China filed a complaint with the World Trade Organization (WTO) after the EU announced provisional tariffs on Chinese-made electric vehicles. The European Commission stated on August 20 that it is confident its investigation and provisional tariffs comply with WTO rules.

The EU's draft decision on final tariffs for electric vehicles introduced mostly minor changes to the provisional rates.

Cars exported by BYD, China's largest electric vehicle manufacturer, will face a tariff of 17 percent, while those from SAIC Motor in Shanghai will be hit with the highest rate of 36.3 percent.

Tesla, which exports cars from China, received a tariff of 9 percent after requesting an examination of the subsidies it received, the European Commission said.