China hits back at electric vehicle tariffs with probe into EU dairy

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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