Beijing, August 21, 2025 — China has officially extended its anti-subsidy investigation into dairy imports from the European Union (EU) by six months, with the new deadline set for February 21, 2026, according to its Ministry of Commerce.
The ongoing investigation targets specific EU dairy products, including cheese, milk, and cream, and is part of broader tensions between China and Western trading partners. Authorities cited the technical complexity of the case as the reason for the extension.
This move follows rising trade hostilities that began in 2023 when the European Commission launched an anti-subsidy probe into Chinese electric vehicles (EVs). The resulting tariffs escalated the trade dispute, leading China to respond with investigations of its own—dairy being a key sector under review.
In the context of this standoff, France’s dairy industry is especially vulnerable, with annual dairy exports to China valued at approximately €650 million (USD 759 million). European dairy producers remain concerned that retaliatory measures could affect pricing, market access, and trade volumes.
The European Dairy Association had anticipated the extension, particularly with scheduled technical visits by Chinese officials in September. The industry is now closely monitoring developments for signs of progress or escalation.
Analysts view this dairy probe as part of a larger strategy by Beijing to negotiate broader trade concessions across multiple sectors, not limited to agriculture or dairy. As the conflict continues, dairy exporters worldwide, including in India, are watching for potential trade shifts and opportunities.
