China's Trade Ministry has launched an investigation into what it sees as unfair trade practices by the European Union with regard to some dairy products, the ministry announced in a statement on Wednesday.
The probe, which will examine products such as fresh cheese, blue cheese and certain types of milk and creams, targets subsidies granted under the EU’s common agricultural policy (CAP).
The announcement comes one day after the EU signalled its intention - on Tuesday - to impose a five-year tariff on electric cars from China, including those produced by US manufacturer Tesla, which has a factory in Shanghai. The EU believes Chinese car prices are artificially low, distorted by state subsidies that harm the competitiveness of European manufacturers.
The tariff, which could reach up to 38%, will replace provisional taxes imposed in early July on Chinese electric vehicle imports.
Beijing, which criticised the decision, has threatened Brussels with retaliation several times in recent months.
The dairy products investigation is due to be concluded within a year, but could be extended by six months, according to the ministry’s statement.
In January, Beijing had already announced an investigation into alleged competition infringement involving wine spirits, such as cognac, imported from the EU and France in particular.
In June, it also began an anti-dumping investigation into imported EU pork and pork products, produced mainly in Spain, France, the Netherlands and Denmark.
