Q: We have noted that MOFCOM has published an announcement of preliminary determination on the countervailing investigation into certain dairy products originating in the European Union. Could you please provide more information on this matter?

A: On August 21, 2024, upon the application of the Dairy Association of China and the China Dairy Industry Association, MOFCOM initiated a countervailing investigation into certain dairy products originating in the EU.

Since the initiation of the case, MOFCOM has consistently conducted the investigation in a fair, impartial, open, and transparent manner, strictly in accordance with China’s laws and regulations as well as relevant WTO rules, fully safeguarding the rights of all interested parties. Preliminary evidence indicates that certain dairy products originating in the EU have been subsidized, that the domestic industry concerned in China has suffered material injury, and that there is a causal link between the subsidies and the material injury. In accordance with the relevant provisions of the Countervailing Regulations of the People’s Republic of China, MOFCOM issued its preliminary determination on December 22, 2025, determining ad valorem subsidy rates for EU producers ranging from 21.9% to 42.7%, and decided to impose provisional countervailing measures.