China’s Ministry of Commerce has decided to extend its anti-subsidy investigation into European Union dairy imports by six months, with the new deadline set for 21 February 2026. The move marks an important step in the ongoing trade frictions between China and the EU. According to the ministry’s announcement, the extension was necessary due to the broad scope and complexity of the case, which covers certain EU exports including cheese, milk, and cream.
The investigation began in August 2024, shortly after the EU launched its anti-subsidy probe into Chinese electric vehicles. In response, China quickly initiated counter-investigations targeting EU dairy products, pork, and brandy. The extension of the anti-subsidy probe into dairy products is seen as both a response to earlier EU actions and as an important bargaining tool for Beijing in current trade talks with Brussels.
Alexander Anton, Secretary General of the European Dairy Association, said the extension was expected and pointed out that, given a technical exchange visit already scheduled for early September, the decision was to some extent reasonable. However, he added that the EU dairy industry does not expect exemptions or settlements similar to those achieved in the brandy discussions.
Industry observers also noted that China’s move is aimed at gaining leverage in negotiations over EU tariffs on electric vehicles by exerting pressure through investigations into EU dairy and pork products. Analyst Even Rogers Pay commented that these investigations are closely linked to China’s strategic interests regarding new energy vehicles in the EU market.
Background Information
The current round of trade friction dates back to 2023, when the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles, alleging that state subsidies distorted fair market competition. In response, China initiated a series of counter-investigations into EU dairy, pork, and brandy products, exemplifying a tit-for-tat trade dynamic.
As tensions between China and the EU have escalated, Beijing has sought to push forward a solution involving minimum pricing for electric vehicles. However, no concrete agreement has been reached so far, leaving the trade dispute unresolved.
Conclusion
China’s decision to extend the anti-subsidy probe into EU dairy products until February 2026 once again highlights the complexity and volatility of China–EU relations. ACIEN will continue to monitor the situation closely, providing timely policy insights and market analysis for member companies and stakeholders.
Source: This article is based on publicly available reporting from Reuters.
Original link: https://www.reuters.com/world/china/china-extends-probe-into-eu-dairy-products-trade-tussle-goes-2025-08-18/
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