China to retaliate regarding EU tariffs, launches investigation on cheeses

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China has announced the launch of an anti-dumping investigation into certain dairy products imported from the European Union, amid escalating tensions with Brussels over Chinese electric vehicles.

In a statement, the Ministry of Commerce confirmed the initiation of the investigation, which will focus on specific cheeses, milks, and creams that benefit from EU subsidies under the Common Agricultural Policy.

This move follows the European Union’s decision earlier this week to impose punitive tariffs on Chinese electric cars, including those produced by Tesla, which operates a major manufacturing plant in Shanghai.

Brussels argues that Chinese electric vehicle prices are artificially low due to substantial state subsidies, creating an unfair market advantage and undermining European automakers’ competitiveness.

The new tariffs, which could reach as high as 36%, will replace temporary measures put in place by the EU in early July.

Beijing has condemned the EU’s actions and has hinted at potential retaliatory measures. The Ministry of Commerce noted that the dairy product investigation, launched today, may take up to a year to complete, with a possible six-month extension.

This follows a pattern of similar actions by China. In January, the government initiated an anti-dumping probe into EU cognac imports, predominantly from France, and in June, it targeted imports of pork and pork products from the bloc.

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