By By Nigel Hunt and Mei Mei Chu
BEIJING/LONDON (Reuters) -China has opened an anti-subsidy probe into imported dairy products from the European Union, stepping up tension with the bloc a day after Brussels released its revised draft decision related to tariffs on China-made electric vehicles.
Below are details on the probe into EU dairy imports and other industries which are under investigation.
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.
It was prompted by a complaint submitted by the Dairy Association of China and the China Dairy Industry Association on July 29 on behalf of the domestic dairy industry.
China will examine 20 subsidy schemes from across the 27-strong bloc, specifically those from Austria, Belgium, Croatia, Czech Republic, Finland, Italy, Ireland, and Romania, it said in a statement.
The EU was China’s second-largest source of dairy products with at least 36% of the total value of imports in 2023, behind only New Zealand, according to Chinese customs data.
The EU exported 1.7 billion euros ($1.84 billion) in dairy products to China in 2023, down from 2 billion in 2022, according to European Commission data.
PORK
The anti-dumping investigation announced in June by China’s commerce ministry is focussing on pork intended for human consumption, such as fresh, cold and frozen whole cuts, as well as pig intestines, bladders and stomachs.
It was prompted by a complaint submitted by the China Animal Husbandry Association on behalf of the domestic pork industry, the ministry said.
Pork suppliers from South America, the U.S. and Russia could be among those gaining market share if Beijing restricts imports from the European Union.
The EU accounts for more than half the roughly $6 billion worth of pork China imported in 2023, according to customs data, around a quarter of which was from Spain alone.
Second- and third-ranking, the Netherlands and Denmark last year exported to China pork products worth $620 million and $550 million respectively.
BRANDY
China’s commerce ministry said on Thursday it would not impose provisional tariffs on brandy imported from the European Union, despite finding it had been sold in China below market prices.
Beijing said in January it was looking into whether EU brandy makers were selling their product in the country at below-market rates, weighing on sentiment for cognac producers, especially for French companies such as Remy and Pernod.
The French cognac industry makes up almost all of China’s EU brandy imports. French producers said they suspected the probe was linked to a broader trade row rather than the liquor markets.
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.