Probe Looms Longer: China Extends EU Dairy Investigation

In a strategic escalation of trade defences, China’s Ministry of Commerce has extended its anti-subsidy investigation into European Union dairy imports—covering milk, cream, and cheese—by six months, now slated to conclude on February 21, 2026, citing the complexity of the case .

This is not an isolated development. It follows earlier investigations into EU pork products and a similar case concerning EU brandy, making dairy the latest “bargaining chip” in China’s broader trade diplomacy, particularly linked to ongoing tensions over EU tariffs on Chinese electric vehicles (EVs) .

Analysts highlight that China is leveraging these sector-specific probes to extract broader concessions from the EU, especially in EV negotiations where Brussels had previously launched its own anti-subsidy probe into Chinese EVs .

The European Dairy Association anticipated the probe's extension—citing scheduled technical visits by Chinese authorities in September—though industry players remain cautious that dairy may not see a resolution similar to brandy, which involved a limited number of producers . French dairy exporters, heavily reliant on the Chinese market (valued at roughly €650 million annually), are hoping for political intervention tied to EV negotiations to ease trade tension .

Further underpinning this narrative, a November 2024 expansion of the probe to include subsidies from Denmark, France, Italy, and the Netherlands underscores the investigation's breadth—and the depth of China’s scrutiny over EU dairy imports .

Industry Insight

This prolonged probe injects heightened uncertainty for EU dairy businesses—disrupting planning, pricing, and market access. Exporters must watch this diplomatic trade interplay closely and may need to diversify toward Asian, African, or Middle Eastern markets while the diplomatic standoff persists.

Source : Dairynews7x7. Aug 22nd 2025 Read full story here