What do e-cars and cheese have in common? The tariff war between China and the EU, which also involves Italy.
You put the tariffs on electric cars? Well, we will Let’s ban cheese. This is the Chinese government retaliation in response to the decision taken last Tuesday in Brussels at the European Commission. After less than 24 hours Beijing has launched aAnti-subsidy investigation on dairy products imported from the European Union, focusing mainly on fresh cheeses, blue cheeses, curds, milk and cream products. And we ended up in the middle: because Italy is also involved in the investigation.
EU vs Chinese e-cars
The European Union has finalized the decision on increasing duties on e-cars made in China in order to compensate for the state aid received by the mandarin brands. A decision that had been hovering in Brussels for at least a month, and with it the reaction from China. Because already in July, when the duties were provisional, in the European Union they had been 45% fewer registered of electric vehicles made in China. And which this week have caused losses from 0.05 to 2% of securities listed in Hong Kong, Shanghai, Shenzhen.
According to Beijing, it is “protectionism”, and its Ministry of Commerce speaks of “unfair competition in the name of fair competition”. There is no fuel, but the fact stings even more: because it seems that a Tesla was given a preferential treatment. In fact, for Elon Musk’s cars produced in China, import tariffs have been lowered to 9% from the previous 20.8%. An affront for which Beijing assures that it will adopt “all necessary measures to resolutely defend the legitimate rights and interests” of its companies. And the China Association of Automobile Manufacturer (CAAM) declares, lapidary, “enormous risks and uncertainties” on future investments in the EU.
China vs EU cheeses
What do we cling to when we complain? Each of us can go on a hunger strike, for example. China, on the other hand, chooses to give up cheeseat least to the European one. Beijing’s retaliation comes in the form of anti-subsidy investigation on local cheeses and dairy products by the China Dairy Association and the China Dairy Industry. The investigation will concern, on the one hand, the examination of the subsidy schemes of the Common Agricultural Policy (CAP) launched at the end of March 2024; on the other, any damage suffered by the Chinese dairy industry in the period 2020-2024. The aim, obviously, is to increase import duties: tooth for tooth.
After New Zealand, theEU is the second supplier of dairy products for China. A turnover of almost 1.7 billion euros, equal to 9.5% of total exports. The examination will concern in particular the national subsidy plans of Ireland, Austria, Belgium, Croatia, Finland, Romania, Czech Republic. In the list there is also the‘Italia. In the sights of Chinese officials in particular the fresh and blue cheeses: so let’s expect losses in the mozzarella, gorgonzola, burrata and stracciatella market.