China, with a population of 1.4 billion, is the world's third-largest milk producer, but still imports a significant amount of milk and milk products due to limited agricultural land. New Zealand is the largest supplier, followed by the United States, Germany, and France. China's milk production is predominantly from large state-owned farms, with a trade dispute with the European Union over tariffs on Chinese electric cars and an investigation into subsidies paid to European dairy farmers. Import levels are expected to decline further.