China’s Ministry of Commerce (MOFCOM) announced the extension of its anti-subsidy investigation into dairy imports from the European Union. The dairy imports probe extension will now continue until February 21, 2026. Officials explained that the complex nature of the case requires additional time for detailed analysis.
Authorities launched the original probe on August 21, 2024. Domestic industry groups, including leading dairy associations, filed applications urging action. They argued that EU subsidies allow European producers to sell dairy products at unfairly low prices. Consequently, local producers reported financial losses and reduced market competitiveness.
Industry groups identified more than 20 subsidy programs linked to EU member states. These programs involved countries such as Ireland, Austria, Belgium, Italy, and Croatia. Applicants emphasized that such subsidies distorted market conditions and inflicted direct harm on Chinese dairy companies.
Trade experts stressed the complexity of the probe. They noted that EU policies operate on both national and bloc-wide levels. Because competitiveness varies significantly across member states, gathering accurate data remains challenging. Analysts agreed that extending the dairy imports probe extension allows for more precise conclusions.
Customs data revealed sharp growth in EU dairy imports. Between 2020 and 2023, shipments increased by 25.8 percent. In the first quarter of 2024 alone, imports rose by an additional 11.3 percent. At the same time, the profitability of Chinese dairy producers weakened. Industry operating rates hovered between 10 and 50 percent, remaining historically low.
The investigation covers a range of products. Authorities are reviewing imports of fresh cheese, processed cheese, blue-veined cheese, and other high-fat dairy items. The review examines subsidies granted between April 2023 and March 2024. Analysts are also assessing wider impacts from January 2020 through March 2024.
MOFCOM has reiterated its commitment to transparency and fairness. Officials emphasized compliance with Chinese laws and World Trade Organization rules. They confirmed that the dairy imports probe extension reflects a responsible approach to handling sensitive trade matters.
If investigators confirm the existence of unfair subsidies, China may apply anti-subsidy duties. Trade experts said such measures would protect domestic producers while maintaining global trade rules. At the same time, China urged the European Union to approach the issue rationally and constructively.
Ultimately, the dairy imports probe extension underscores China’s determination to safeguard its domestic industry. Authorities stressed that resolving the case requires cooperation, objectivity, and scientific evidence. By adopting this approach, China aims to balance domestic protection with long-term international trade stability.
