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Chinese Companies May Seek Anti-Subsidy Probe into EU Dairy Imports Amid Trade Tensions

China 11.06.2024
Source: The DairyNews
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Chinese firms are reportedly gathering evidence to request an anti-subsidy investigation into European Union dairy imports, according to a post by the state-backed Global Times on the social media platform X, formerly known as Twitter.
Chinese Companies May Seek Anti-Subsidy Probe into EU Dairy Imports Amid Trade Tensions
This development highlights escalating trade tensions between China and the EU, which have recently intensified due to reciprocal trade investigations, including the EU's inquiry into Chinese electric vehicle subsidies.

The potential probe could impact a significant trade channel, as China is the third-largest destination for EU agri-food exports, accounting for nearly 7% of the bloc’s total agri-food trade. In 2023, the EU's dairy exports to China totaled €1.7 billion, a decrease from over €2 billion the previous year. This decline reflects a slight dip in China's overall dairy demand, which fell to just under 16.5 million tonnes for the year.

The investigation could particularly affect Irish dairy exports, which have already seen a reduction in 2023. Valued at approximately €6.3 billion, these exports fell nearly 8% from the previous year. Specifically, Irish dairy exports to China, including whey and skim milk powder (SMP), dropped 5% to €420 million. However, exports of specialized nutritional powders, casein, milk, and cream either met or exceeded the demand levels of 2022.

This move by Chinese companies to potentially initiate an anti-subsidy investigation could have broad implications for EU-China trade relations and the global dairy market.
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