China on Monday declared an extension of its anti-subsidy probe into dairy imports from the European Union, further escalating the ongoing trade dispute between the two major economies, according to a report by AFP.
China’s Ministry of Commerce stated that the anti-subsidy investigation will now continue for an additional six months, with a new deadline set for February 21, 2026, citing the case’s ‘complexity’ as the reason for the extension.
Beijing launched the investigation in August 2024, targeting imports of certain dairy products like cheese, milk, and cream, following the European Union’s push to implement steep tariffs on Chinese electric vehicles.
The EU contended that government subsidies from Beijing give Chinese car manufacturers an unfair pricing edge, allowing them to outcompete European rivals. Beijing rejected the accusation and launched investigations into European imports of pork, brandy, and dairy goods. Meanwhile, the EU had introduced additional import duties of up to 35% on Chinese electric vehicles in October.
Beijing then filed a complaint with the World Trade Organization, which in April declared plans to establish an expert panel to evaluate the European Union’s actions.
In June, Beijing prolonged its inquiry into pork imports from the EU, setting a new deadline for December. The following month, it introduced tariffs on EU brandy while allowing leading producers to avoid the duties provided they adhered to a set minimum price.
In the same month, European Council President Antonio Costa stated that the EU sought tangible progress on trade and economic matters at the EU-China summit in Beijing. However, significant disagreements persist regarding trade, with the EU concerned that subsidized Chinese products might flood European markets.
Last month, the European Union and China marked 50 years of diplomatic ties during a summit in Beijing. European Commission President Ursula von der Leyen and António Costa attended the event alongside Chinese President Xi Jinping, but no major progress was achieved in addressing trade disputes.
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