Q: On February 12, MOFCOM announced the final determination on the countervailing investigation into certain dairy products originating in the European Union. Could you provide details on the case?

A: On August 21, 2024, upon the application from the domestic industry, MOFCOM initiated a countervailing investigation into certain dairy products originating in the EU. Adhering to the principles of fairness, impartiality, openness, and transparency, the investigation was conducted in strict accordance with relevant Chinese laws and regulations as well as relevant WTO rules, and led to an objective and impartial conclusion after widely soliciting views from all interested parties, and fully safeguarding the rights of all parties.

The report of determination shows that the dairy products originating in the EU have been subsidized, causing material injury to China’s relevant domestic industry, and a causal link has been established between the subsidies and the material injury. On February 12, 2026, MOFCOM issued the final determination, setting countervailing duty rates for EU companies ranging from 7.4% and 11.7%, and decided to implement the countervailing measures from February 13 for a period of five years.