China Extends Anti-Subsidy Probe into EU Dairy Imports Amidst Trade Tensions

China extended its anti-subsidy investigation into European Union dairy imports by six months to February 21, 2026, citing the complexity of the case involving some EU cheese, milk, and cream products. This move is part of a broader trade conflict with Brussels and Washington that escalated in 2023 when the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles. China responded with investigations into imports of EU brandy, pork, and dairy products, with the extension of the dairy probe anticipated due to further technical evaluations by Chinese officials. Alexander Anton, secretary general of the European Dairy Association, commented on the expected extension, noting the industry does not foresee a similar settlement to that of brandy producers, who averted duties by selling at a minimum price.

Francois-Xavier Huard, CEO of the FNIL, highlighted concerns in France regarding potential duties impacting dairy exports to China, valued at approximately 650 million euros annually. Efforts for a political resolution of the electric vehicle dispute are ongoing, with hopes to avoid tariffs on French dairy products. Trade negotiations continue as the EU and China discuss setting minimum prices for Chinese-made EVs, but a resolution has yet to be achieved. Analyst Even Rogers Pay emphasizes the significance of these investigations as leverage in the ongoing dialogue over the EU's tariffs on China’s new energy vehicles.