Controversy Regarding Vehicle Registrations: China Extends Inspections of EU Dairy Products - Escalating car tariff disagreement: China to prolong evaluation of European dairy goods
The ongoing trade conflict between the European Union (EU) and China remains unresolved, with specific disputes over auto tariffs and dairy product investigations persisting amidst a broader context of strained relations.
In the realm of electric vehicles (EVs), the EU and China are locked in a dispute over tariffs and market access barriers. Despite high-level talks between EU Commission President Ursula von der Leyen and Chinese Premier Li Qiang, no concrete resolution has been reached. The EU has emphasised the need for a rebalancing of trade relations to make them sustainable and mutually beneficial, but talks have so far failed to yield substantial agreements, with tensions remaining high.
Regarding the investigation into dairy products from the EU, the EU has set up an Import Surveillance Task Force to track diverted goods and support safeguard measures, signalling proactive efforts to address any unfair practices. The extension of this investigation, originally scheduled to be completed this week, will now last until February 21, 2026. The extended investigation is focused on fresh and processed cheese, among other dairy products.
The extension of the investigation is a response to the EU's tariffs on Chinese EVs, which the EU justifies due to perceived excessive state subsidies in China. However, it is important to note that the extension does not directly affect the tariffs on Chinese EVs imported to the EU.
Beijing has accused Brussels of disregarding international rules in regard to the auto tariff, while rejecting the EU's accusations and speaking of protectionism. The extended investigation does not necessarily imply the imposition of tariffs on EU dairy products.
The trade conflict has resulted in inspections of brandy and pork from the EU by Chinese authorities, in addition to the dairy product investigation. The extension of the investigation may still potentially impact the trade relations between China and the European Union, particularly affecting the supply and price of certain dairy products in China.
As a significant EU-China summit planned for July 2025 aimed to address structural trade concerns, as of August 2025, no breakthrough resolution on these disputes has been announced. The EU and China continue to navigate complex trade relations, with efforts to establish joint mechanisms to monitor trade diversion and maintain stable trade amid US-China tensions and global overcapacity issues.
- The EU and China, amidst their unresolved trade conflict, are also locking horns over policies in the electric vehicle industry, mirroring the politics of international trade.
- In the broader context of strained relations, both communities are striving to establish general-news worthy agreements, with talks on employment policies dominating the negotiations, particularly in the electric vehicles sector.
