China has launched an inquiry into whether dairy farmers in the European Union (EU) are getting unfair government support in the wake of a growing trade China-EU dispute, CNN reports.
China’s Ministry of Commerce says they’re looking into 20 different subsidy programs that might benefit EU dairy farmers. These include things like money for farming equipment, extra income for young farmers, and environmental support, according to the report.
China’s probe could take up to 18 months. The EU is a major dairy exporter, and China is a big buyer of their milk powder.
The inquiry comes after the EU announced new tariffs on most electric vehicle imported from China. This is because the EU is concerned that China unfairly supports its EV companies. Both sides have been going back and forth on trade issues for a year now.
The EU has also launched investigations into China’s support for wind turbine companies. Meanwhile, China has launched investigations into brandy and pork products from the EU.
The EU says they will closely watch China’s investigation and make sure it follows international trade rules. They also say they will protect EU dairy farmers and their support programs.
