In a significant escalation of trade tensions, China has launched an anti-dumping investigation into European Union (EU) dairy products.

This move follows the EU's decision to adjust tariffs on Chinese electric vehicles, which Beijing criticized as unfair.

The Chinese Ministry of Commerce announced that the investigation will focus on various dairy imports, including cheese, milk, and cream, from several EU countries such as Austria, Belgium, and Italy.

This action is seen as a retaliatory measure against the EU's tariffs on Chinese electric cars, which the EU claims are subsidized, giving them an unfair competitive edge.

The EU, a major supplier of dairy products to China, exported goods worth 1.7 billion euros in 2023. The ongoing trade dispute highlights the growing economic friction between the two regions, with potential implications for global trade dynamics.