China will implement provisional duties ranging from 21.9% to 42.7% on selected dairy imports from the European Union starting December 23, following a year-long anti-subsidy investigation, the Chinese commerce ministry announced on Monday.
The ministry stated that preliminary findings indicate certain EU dairy imports are subsidized and have caused significant harm to China’s domestic industry.
The measures come amid increased trade tensions since 2023, when the European Commission initiated an anti-subsidy probe into Chinese electric vehicle exports. In what has been widely interpreted as a response to Europe’s actions, Beijing subsequently began investigations into imports of EU brandy, pork, and dairy products.
A group of French companies will pay 29.7%, while about 50 other firms from countries such as Italy, France, and Germany will be levied at 28.6%, the ministry added. Meanwhile, EU firms that did not participate in the probe will also be subject to the top rate.
The European Union is China’s second-largest source of dairy products, following New Zealand, according to Chinese customs data. EU data for 2023 showed that China was the bloc’s second-biggest market for skimmed milk powder and the fourth-largest for butter and whole milk powder.
A trade remedy department official noted that China has exercised caution in its use of trade remedy measures, adding that no new trade remedy investigations have been opened against the EU this year. Only three anti-dumping rulings have been finalized—covering brandy, copolymerised polyformaldehyde, and pork.
