News Dairy
China targets dairy in trade war with EU
China takes the next step in the trade war with the European Union. After previously initiating an antidumping investigation into pork, the Asian country is now focusing on dairy. The measure is not isolated but appears to be a retaliatory action against European import duties on cheap electric cars from China. The idea is that Europe discriminates against Chinese car brands.
The Chinese Ministry of Commerce announced yesterday that it has immediately launched an antidumping investigation into imported dairy products from European member states. Initially, the investigation targets various types of cheese, milk, and cream intended for human consumption. This excludes milk and whey powder, which are by far the largest European export flows, for the time being. Such an investigation was previously threatened.
A similar investigation is also ongoing for European pork. In this case, China is focusing directly on European slaughterhouses such as Vion, Danish Crown, and the Spanish Litera. The situation regarding dairy is not as concrete yet, except that the roles of 20 out of the 27 European member states are being scrutinized. While the Netherlands is not mentioned, countries like Ireland, Belgium, and Italy are.
Electric Cars
Although China does not explicitly state it, the antidumping investigations seem to be a retaliation for European import duties on cheap Chinese electric cars. This has been ongoing for some time with new developments. The European Commission announced earlier this week that it will reduce the import duties on Teslas made in China for the next five years, from the planned 20.8% to 9%. This new rate is significantly lower than the rates imposed on Chinese electric car manufacturers, ranging from 17% to 36.3%. Chinese automakers feel heavily disadvantaged by this.
The Commission's plan still needs to be approved by the European Parliament.
