EU challenges China's dairy probe at WTO

The European Commission launched a challenge at the World Trade Organisation (WTO) on Monday against China's investigation into EU dairy products, initiated after the European Union placed import tariffs on Chinese electric vehicles.

This is the first time the European Union has taken such action at the start of an investigation, rather than wait for it to result in trade measures against the bloc.

Proceedings at the WTO start with a mandatory period of 60 days for the parties to consult each other. The Commission said it would ask the WTO to set up an adjudicating panel if the consultations did not lead to a satisfactory solution. WTO panels usually take more than a year to reach conclusions.

Later on Monday, China's commerce ministry said it had received an EU request for consultations and expressed regret over the bloc's WTO challenge. Beijing's investigation had been initiated "based on Chinese law and at the request of domestic industry," the ministry said in a statement.

"China has a responsibility to protect the legitimate rights and interests of its domestic industries," it added. China initiated its anti-subsidy investigation on August 21, targeting EU liquid milk, cream with a fat content above 10% and cheeses.