China Says Its Anti-Subsidy Measures on EU Dairy Are Legitimate

China’s recent countervailing measures on certain dairy products imported from the European Union (EU) have been deemed legitimate and lawful by trade experts, amid widening trade tensions between Beijing and Brussels. The measures target products including cheese and cream after a year-long anti-subsidy investigation launched in August 2024.

According to the Ministry of Commerce of China, preliminary findings show that EU dairy products benefit from significant subsidies under the EU’s Common Agricultural Policy, leading to “material injury” to China’s domestic dairy industry. As a result, China will impose provisional countervailing duty deposits ranging from 21.9 % to 42.7 % on affected imports starting Dec 23, 2025 — a move designed to offset unfair competition and protect its local producers.

Trade expert Zhang Xiaopeng of the Shanghai Institute for Openness Strategy Research told Yicai that China’s investigation and resulting measures fully comply with Chinese laws and WTO rules, and are being applied in a fair and transparent manner. He emphasised that such trade remedies are allowed under international trade frameworks to counter the distorting effects of export subsidies.

China’s anti-subsidy probe focused mainly on fresh and processed cheeses and high-fat cream, products where the domestic industry seeks to upgrade and expand value addition. The measures reflect Beijing’s intent to foster a more competitive local dairy sector while responding to industry concerns about subsidised imports undercutting domestic pricing and market share.

The EU has criticised the duties as “unjustified and unwarranted” and has indicated plans to challenge the measures through the World Trade Organization (WTO) dispute settlement system. The development adds to broader trade tensions between China and the EU, including disputes over tariffs on electric vehicles and other goods.

Source : Dairynews7x7 Dec 30th 2025  Read full story here