China will extend its probe into dairy imports from the European Union for another six months, delaying a decision as tensions linger between the two trade partners.
The investigation, launched in August last year, has now been extended until February 21 next year, due to the “complexity of the case,” the commerce ministry said in a statement released on its website.
China’s Ministry of Commerce began an investigation into imports of dairy products originating from the EU, examining 20 subsidy schemes operating in a number of countries including Ireland, Italy, Croatia, Austria, Belgium, and Finland.
China’s action is being viewed as a response to tariffs imposed by the EU on Chinese-made electric cars imported into Europe.
Any actions by China could impact Ireland, which exports significant amounts of dairy products to the world’s second-largest economy. In 2023, Ireland exported €420m of dairy products to China, including specialised nutritional powders and casein.
Beijing’s decision to delay any potential trade measures on EU dairy products comes as its ties with the bloc remain strained. The EU had launched its own investigations into Chinese subsidies across a range of sectors earlier in 2024 and voted in October to impose tariffs as high as 45% on electric vehicles from China. The first in-person EU-China summit since 2023, held last month, also exposed a divide spanning trade to the war in Ukraine.
While EU dairy exports to China were valued at €1.51bn last year, according to official figures, Beijing’s probe targeted a few products including fresh and processed cheese.
The EU has challenged this probe by requesting consultations via the World Trade Organisation.
Additional reporting Bloomberg