China Retaliates Against EU's 'Electric Vehicle Tariff Bomb'... Indicates Anti-Dumping Investigation on Dairy Products

"Industry Demands in Focus... Reviewing Responses from Over 120 Companies"

China has revealed that it is considering an anti-dumping investigation into EU dairy products in response to the European Union's (EU) 'electric vehicle tariff bomb' measures. Following the initiation of such an investigation into EU pork, China has indicated the possibility of additional probes.

Appearance of Chinese BYD electric car. [Photo by AP Yonhap News]

According to a Yonhap News report, He Yadong, spokesperson for the Chinese Ministry of Commerce, stated at a regular briefing on the 20th, "Since the Ministry of Commerce started the investigation into EU pork, we have been paying attention to industry demands to investigate dairy products."

He added, "Based on Chinese regulations and World Trade Organization (WTO) rules, domestic industries have the right to apply for investigations to protect normal market competition order and their legitimate rights. The investigating agency reviews applications submitted by domestic industries and initiates investigations if the conditions for commencement are met."

The Ministry of Commerce also mentioned that it is reviewing responses from over 120 companies regarding the EU brandy anti-dumping investigation that began in January.

On the 12th, the European Commission notified Chinese authorities and targeted companies of plans to impose provisional additional tariffs ranging from 17.4% to 38.1% on Chinese electric vehicles. The tariff rates were determined based on the provisional conclusions of the anti-subsidy investigation into Chinese electric vehicles. These tariffs will be imposed starting next month and, if approved by the 27 EU member states in the second half of this year, will remain in effect for five years.

While China has strongly criticized the EU's decision, it has left room for the possibility of 'dialogue and negotiation.' On the 19th, Ding Xueshang, Vice Premier of the State Council, visited the EU headquarters to convey China's position.

On the same day, spokesperson He criticized, "During the EU's anti-subsidy investigation into Chinese electric vehicles, the EU collected a large amount of information on the production, management, development plans, technology, and manufacturing methods of Chinese electric vehicle and battery companies. They demanded information on production costs, all parts and raw materials, sales channels, pricing methods, EU customer information, and supply chain details." He added, "The type, scope, and quantity of information collected by the EU are unprecedented and far exceed what is necessary for the anti-subsidy investigation."

He concluded, "China will take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies."