illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: China has launched an anti-subsidy investigation into EU dairy imports, escalating a trade conflict with the European Union
•  This move is seen as retaliation for the EU's recent decision to impose tariffs on Chinese electric vehicles (EVs)

🔭 The context: The investigation targets various dairy products, including cheese and cream, with a focus on EU subsidies under the Common Agricultural Policy and national programs in several member states
•  This action follows previous Chinese probes into EU pork and brandy, which have targeted key European exporters like France and Spain

🌍 Why it matters for the planet: The trade dispute highlights growing tensions between major global economies, which could impact international trade relations and agricultural markets, with potential knock-on effects for sustainability and food security

⏭️ What's next: The European Commission has pledged to defend the EU dairy sector and ensure compliance with WTO rules
•  The situation could further escalate if no resolution is found, affecting other industries and leading to broader trade disruptions

💬 One quote: The EU Chamber of Commerce in China noted, "The use of trade defense instruments by one government is increasingly being responded to seemingly in kind by the recipient government"

📈 One stat: The dairy products under investigation represent over €500 million in annual value, with French exports alone accounting for €190 million

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