The European Commission has filed a complaint with the World Trade Organization (WTO) over China’s recent anti-subsidy investigation into EU dairy products. The move comes as both the EU and the US are increasingly pushing back against China’s actions targeting their industries.
In an unprecedented move on Monday, the European Commission has launched consultations at the World Trade Organisation (WTO) against an ongoing investigation by the Beijing authorities into the compatibility of EU subsidies with global trade rules. The opening of a consultation is the first step in a dispute at the WTO.
Beijing authorities are investigating imports of all types of EU cheese, as well as cream and milk with more than 10% fat, alleging that subsidies provided by the EU’s Common Agricultural Policy (CAP) and individual member states are harming Chinese producers. However, the European Commission maintains that the EU complies with international trade rules and insists that China’s dairy industry is not negatively impacted by EU subsidies.
The Commission’s move reflects growing frustration with what it describes as “baseless accusations” and a pattern of China taking swift action to protect its trade interests without sufficient evidence.
In parallel, the United States is also increasing scrutiny of China. Reports have emerged that Washington plans to ban the use of Chinese and Russian software and hardware in internet-connected vehicles due to national security concerns. This could effectively prevent Chinese cars from entering the US market. Earlier, the United States announced a 100% tariff on Chinese vehicle imports starting on 27 September.
China’s Foreign Ministry responded on Monday, condemning the measures as “discriminatory” against Chinese companies.
© BELGA PHOTO JONAS VAN BOXEL
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