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China Strikes Back: Anti-subsidy Investigation Begins Against Imported Dairy Products From The EU

China has announced the start of an investigation into EU-subsidized dairy imports. The news comes just a day after Brussels published its revised draft to introduce higher tariffs on electric car imports from China.

KEY FACTS 

  • According to information from the state-run Xinhua news agency, China’s Ministry of Commerce is launching an anti-subsidy investigation against imports of dairy products intended for consumption. It is about cheeses, milk and creams.
  • The investigation began following a complaint filed by the China Dairy Association and the China Dairy Industry Association on July 29.
  • China will consider 20 subsidy schemes from across the 27-member bloc, specifically those from Austria, Belgium, Croatia, the Czech Republic, Finland, Italy, Ireland and Romania.
  • According to Chinese customs data, the EU is the second largest supplier of dairy products to China with at least 36% of the total value of imports in 2023. According to data from the European Commission, in 2023 the EU exported to China dairy products worth 1, 7 billion euros ($1.84 billion).
  • In June, the Chinese authorities announced the initiation of another investigation – into the subsidized import of pork and frozen products. The investigation began following a complaint filed by the China Animal Breeding Association. According to data from EU customs, more than half of the pork imported from China in 2023, worth about 6 billion dollars, falls.

KEY STORY 

The European Commission announced the introduction of higher tariffs on electric car imports from China and launched an investigation into the excessive amount of subsidies the state provides to the sector. The EU believes that cheap imports from China are undermining the European market. The tariffs were preliminary and were put in place while the investigation is still ongoing. 

China says the measures are protectionist and has threatened to retaliate with its own tariffs on a number of sectors, including pork, large-engine cars and spirits. Beijing also disputes the measures before the WTO.

According to the EC’s final proposal, the Chinese companies that will be hit the hardest by the higher tariffs are SAIC Motor Corp., Volvo Car parent company AB Geely and BYD. They face additional duties of 36.3%, 19.3% and 17% respectively. These duties will be added to the existing 10% levy on EV imports into the EU.

The final decision will be taken only after the publication of the final regulation by 30 October 2024 at the latest. All potential measures will be in force for a period of 5 years, which may be extended.

WHAT TO WATCH FOR

Rates may still change before they become final. The parties have the right to dispute this proposal within 10 days after its publication. Their comments will be considered and taken into account. Chinese companies condemned the EC’s decision and described the tariffs as “unfair”.

Cloudflare Sets New Default To Separate Search Crawlers From AI Bots

Cloudflare has drawn a sharper line between traditional search and artificial intelligence.

Beginning September 15, 2026, the company will change its default settings to block so-called mixed-use crawlers from pages that run ads, unless a site owner chooses otherwise. The policy applies to new Cloudflare customers, new sites created by existing customers, and all current free customers.

A Clearer Divide In Web Access

The shift could materially reshape how AI companies collect web data for model training and agentic products. Cloudflare’s central argument is straightforward: most publishers want their content to remain visible in search and accessible through certain AI services, but they do not want that same material repurposed without compensation.

In Cloudflare’s view, the problem is not crawling itself. It is the blending of three different functions: search, agentic use, and training into a single bot that makes it difficult for website owners to set meaningful boundaries.

The Google Question

Cloudflare pointedly referenced the “world’s largest search engine,” an unmistakable nod to Google, arguing that it has access to roughly twice as much information as rival AI companies because it makes it harder for customers to stay discoverable without also being used for AI.

Google has disputed that framing. The company offers Google Extended, a crawler setting that lets publishers opt out of having content used for training and AI products such as Gemini apps and Vertex AI, without affecting visibility in Google Search. At the same time, Googlebot still crawls for Search and for AI-powered features such as AI Overviews and AI Mode.

Publishers Want Reach, Not Exploitation

Matthew Prince, Cloudflare’s co-founder and chief executive, said the company is moving quickly because the internet is now dominated by machine traffic.

“Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” Prince said, referring to the recent milestone in which bots surpassed human traffic online sooner than expected.

Prince added that Cloudflare’s tools and partnerships are designed to give publishers more visibility and commercial leverage, while also rewarding AI companies that are transparent about how they use content.

From Pay Per Crawl To Pay Per Use

Cloudflare has increasingly positioned itself as a gatekeeper for publishers looking to assert control in the AI era. The company already offers tools to block AI bots, along with a marketplace called Pay Per Crawl, which lets websites charge AI systems for scraping.

That framework is now expanding into Pay Per Use, which Cloudflare says will allow publishers to charge AI companies when content creates value, not merely when it is fetched. In practical terms, that shifts the economics from extraction to monetization.

Cloudflare says the move may also reduce waste. Its data suggests more than half of crawl traffic from AI bots is spent revisiting pages that have not changed, consuming bandwidth and compute without adding fresh value for either side.

Early Partners Signal The Commercial Model

To launch the new system, Cloudflare is working with Ceramic.ai and You.com. Under the opt-in model, publishers can be paid when their content appears in Ceramic’s AI search results or when You.com accesses premium material.

Cloudflare says other AI companies can adapt the model to fit their own products. The broader message is clear: the era of unrestricted crawling is giving way to one in which access, attribution, and compensation are increasingly negotiated rather than assumed.

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