• China imposes provisional duties ranging from 21.9% to 42.7% on EU dairy products.
• The duties result from a year-long investigation into alleged subsidies impacting China's dairy sector.
• The EU has criticized the tariffs as "unjustified" amid increasing trade tensions.
• China's actions follow the EU's anti-subsidy probe into Chinese electric vehicles.
• Chinese imports of dairy products from the EU amounted to significant market value, emphasizing the impact of these duties.

China has announced provisional duties of 21.9% to 42.7% on certain dairy products imported from the European Union, effective December 23. This decision follows a year-long investigation that found alleged subsidies for EU dairy products that harmed China's domestic industry, as reported by the Chinese commerce ministry. Individual companies such as Italy's Sterilgarda Alimenti SpA will face the lowest duty rate, while FrieslandCampina Belgium N.V. and FrieslandCampina Nederland B.V. will incur the highest rate of 42.7%.

The tariffs, which affect a range of dairy items including cheese and cream, stem from Beijing's conclusion that substantial EU subsidies have caused "material injury" to local producers. This action is part of a broader conflict that escalated in 2023 after the EU commenced an anti-subsidy investigation into Chinese electric vehicles. Subsequent measures from China targeted EU products such as brandy and pork, suggesting a retaliatory pattern in response to EU actions.

The European Union has swiftly condemned these duties as "unjustified," highlighting that the investigation behind them is based on "questionable allegations and insufficient evidence." European officials have stated that they will formally respond to the preliminary findings, as trade relations between the EU and China continue to strain amidst ongoing disputes over tariffs and market access.

China's commerce ministry asserted that it has exercised caution with trade measures, noting no new investigations against the EU have been initiated this year and that only three anti-dumping rulings were issued. This restraint is in stark contrast to the European Commission's recent decisiveness in imposing its own trade measures against Chinese products, highlighting a growing divide in the economic relationship between these two global powers.