The European Union has criticised China’s decision to impose duties of up to 42.7 per cent on certain dairy products from the bloc, describing the move as unjustified amid an intensifying trade dispute between the two economic powers.
China’s Ministry of Commerce announced on Monday that it would introduce “duty deposits” ranging from 21.9 per cent to 42.7 per cent on a range of European dairy products, including fresh and processed cheese, curd, blue cheese, as well as some milk and cream. The measures are scheduled to take effect on Tuesday.
Beijing said the action followed preliminary findings from an anti-subsidy investigation launched in August 2024 at the request of the Dairy Association of China. According to the ministry, the probe indicated a link between European Union subsidies and what it described as “substantial damage” to China’s domestic dairy industry. The investigation is expected to conclude in February.
European officials, however, rejected China’s conclusions. A European Commission trade spokesperson said the investigation was based on questionable allegations and insufficient evidence, arguing that the measures were “unjustified and unwarranted.”
“The Commission is currently examining the preliminary determination and will submit its comments to the Chinese authorities,” the spokesperson added.
The latest action comes just a week after China imposed anti-dumping duties on European pork imports for a five-year period. Those levies, which took effect on December 17, range from 4.9 per cent to 19.8 per cent, reduced from temporary duties of between 15.6 per cent and 62.4 per cent introduced in September.
The EU and China have been locked in a widening trade dispute, fuelled by European concerns over what they describe as an unbalanced economic relationship with Beijing. The tensions escalated in 2024 when the EU moved to impose steep tariffs on Chinese electric vehicles, arguing that state subsidies gave Chinese manufacturers an unfair advantage.
China has rejected the accusation and responded with what the EU views as retaliatory investigations into European pork, brandy and dairy products. After the EU proceeded with tariffs on Chinese electric vehicles, Beijing required EU brandy producers to raise prices or face anti-dumping duties of up to 34.9 per cent.
The European Union recorded a trade deficit of more than $350 billion with China in 2024. French President Emmanuel Macron has warned that Europe could consider tougher measures, including tariffs, if the imbalance is not addressed.
Beyond trade, relations between the EU and China remain strained over geopolitical issues, including Russia’s 2022 invasion of Ukraine. The EU has repeatedly called on Beijing to exert pressure on Moscow to end the war, a move China has so far resisted.
