European milk and cheese producers could become the latest victim in the EU-China trade war.
China's Ministry of Commerce has announced it will launch an investigation into EU member countries' subsidies for dairy products, which could lead to tariffs on their exports to China.
The announcement came a day after the EU published a draft decision to finalize tariffs on electric vehicles made in China, as a follow-up to the temporary tariffs announced last month. The Chinese government and automakers condemned the move.
The investigation into dairy products will cover a range of products, including fresh and processed cheese, blue cheese and milk, according to the Ministry's announcement.
Subsidies within the framework of the EU's common agricultural policy will be considered, as well as subsidies provided by eight countries of the European Union, including Italy, Finland and Croatia.
The Commerce Department previously launched an investigation into European exports of spirits and pork. The investigations have raised fears of a trade war.
China filed a complaint with the World Trade Organization after the EU announced temporary tariffs on Chinese-made electric vehicles. The EU Commission said on Tuesday that it is confident that its investigation and provisional duties are in line with WTO rules.
The draft EU decision on final tariffs for electric vehicles made mostly minor changes to the provisional rates. Cars exported by BID, China's largest electric vehicle maker, will face a 17 percent tariff, while those from Shanghai-based SAIC Motor will be hit with the highest rate of 36,3 percent. Tesla, which exports cars from China, received a 9 percent tariff at this stage after it requested an investigation into specific subsidies it received, the European Commission said.
Bonus video:
