Beijing, China – In a new escalation of trade disputes, China’s Ministry of Commerce announced on Monday the imposition of provisional tariffs on dairy imports from the European Union. This followed preliminary investigations that concluded the EU was engaging in “unfair subsidy” practices that harm the domestic industry.
Investigation results: Support reaches 42%
The ministry revealed in its statement that investigations uncovered subsidy rates ranging from 21.9% to 42.7%. This subsidy led to “price distortions” that negatively impacted the ability of Chinese producers to compete in their domestic market.
Key points of the Chinese decision
Market protection: The provisional charges are intended to curb material damage to the local sector until final investigations are completed.
International compliance: Beijing has asserted that its measures are in line with international rules and aim to ensure “level playing field”.
The open door: China stressed that it does not aim for escalation, but seeks to address differences through “dialogue and consultation”.
Political and commercial dimensions
Observers believe this move is part of Beijing’s “balanced pressure” strategy. It uses trade protectionist measures to retaliate against similar European actions in other sectors (such as electric vehicles), but is careful to avoid an “open confrontation” that could disrupt global food supply chains.
Potential repercussions on bilateral relations
These tariffs add a new layer of tension to relations between China and the European Union. However, Beijing’s indication of its willingness to “coordinate” reflects a mutual desire. This coordination aims to contain the dispute within institutional frameworks, avoiding damage to the long-standing economic partnership.
