The Chinese Ministry of Commerce has initiated an investigation into European subsidies for dairy products, examining 20 EU subsidy programs, including the Common Agricultural Policy and national schemes. This 18-month investigation aims to address concerns over unfair competition. The European Commission intends to defend the EU dairy industry and ensure WTO compliance. This probe adds to existing trade tensions, as China has also contested EU import tariffs on electric cars and investigated European meat processors for dumping. Despite New Zealand being the largest supplier, EU dairy exports to China were valued at around 1.7 billion euros last year.