European Commission Challenges China's Dairy Product Probe Amid Trade Tensions
The European Commission has firmly rejected China's recent investigation into EU dairy products, stating that it has no factual basis. This move comes as Brussels escalates its trade dispute with Beijing by launching proceedings at the World Trade Organization (WTO) to challenge the anti-subsidy investigation initiated by China. The probe follows the EU's decision to impose additional tariffs on Chinese electric car imports, a measure aimed at protecting its automotive sector, which employs approximately 14.6 million workers.
In a statement, the European Commission announced that it has officially requested consultations with the WTO, marking the first step in the dispute settlement process. The EU's Trade Commissioner, Valdis Dombrovskis, expressed strong concerns, emphasizing that the investigation is rooted in “dubious allegations and insufficient evidence.” He assured that the EU would vigorously defend its interests against what it perceives as arbitrary measures taken by China.
The Commission also highlighted that the subsidies provided for EU dairy products are in full compliance with international rules and do not adversely affect the Chinese dairy industry. This assertion aims to counteract the narrative pushed by China, which has been accused of distorting competition by subsidizing its own manufacturers, thus allowing them to sell products at lower prices.
This latest development is part of a broader pattern of escalating trade tensions between the EU and China, which has seen China also launch an anti-dumping investigation into EU pork products earlier this year. The EU's firm stance against China's dairy probe signals its commitment to protect its agricultural interests amidst increasing global trade frictions.
