Financial Times: Beijing Escalates Trade Dispute with EU by Targeting Dairy Imports

China announced the opening of an anti-dumping investigation into imported European dairy products, in the latest episode of the trade dispute between Beijing and the European Union.

"Financial Times" considered that this investigation represents an escalation in the trade dispute, and comes a day after the European Commission announced the imposition of a series of additional duties on imports of Chinese electric vehicles, despite Beijing's objection.

On its part, the Chinese Ministry of Commerce stated, in a statement Wednesday, that its investigation into European Union dairy imports came in response to complaints from local manufacturers, explaining that the investigation will include “certain products” including cream products and cheese.

The Financial Times said that this step constitutes the strongest reaction from Beijing to date to European customs duties.

The European Commission said Brussels "took note" of China's decision to launch an investigation and would analyze China's actions "closely."

“We will resolutely defend the interests of the EU dairy industry... and intervene as appropriate to ensure that the investigation is fully consistent with the relevant WTO rules,” It added.

The European Chamber of Commerce in China said that Beijing's behavior "should not be considered surprising."

While the Secretary General of the European Dairy Association Alexander Anton expressed his confidence that the program is in line with World Trade Organization rules and that the European Union and China “will find a constructive way to resolve any bilateral disputes.”

It is worth noting that the value of European dairy product exports to China amounted to about 1.8 billion euros last year, down from the value of 2 billion euros the previous year, according to trade data from the European Commission. It also constituted about 9.5% of the total European Union dairy exports.