China targets European firms in anti-subsidy probe into EU dairy

China on Monday singled out Dutch firm FrieslandCampina as well as French and Italian companies in an anti-subsidy probe into dairy imports from the European Union, after lawmakers from these countries voted for tariffs on Chinese electric vehicles.

The world's second-largest economy launched the investigation into imports of some cheese, milk and cream from the European Union in August.

Details of the probe come after EU members on Oct. 4 voted in favour of imposing tariffs of up to 45% on imported Chinese EVs.

Italy, France, and the Netherlands had voted in favour of the tariffs, while Belgium had abstained.

China's commerce ministry said it would use samples collected from Elvi (France) Co., Ltd. (ELVIR), FrieslandCampina Nederland B.V., FrieslandCampina Belgium N.V. as well as Italian firm Sterilgarda Alimenti SPA in its investigation.

The companies were selected based on export volume, product structure and geographical distribution, the ministry said in a statement.

The European Commission has launched a challenge at the World Trade Organisation (WTO) against China's probe, the first time it has taken such action at the start of an investigation, rather than wait for it to result in trade measures against the bloc.

The EU was China's second-largest source of dairy products, behind only New Zealand, according to Chinese customs data.

The bloc exported 1.7 billion euros ($1.84 billion) in dairy products to China in 2023, according to data from the European Commission's Directorate-General for Agriculture and Rural Development, which cited Eurostat.