The head of the Trade Remedy Investigation Bureau of the Ministry of Commerce answered reporters' questions on the preliminary ruling of the anti subsidy investigation on imported dairy products originating from the European Union

Q: We have noticed that the Ministry of Commerce has announced the preliminary ruling on the investigation of anti subsidy for imported dairy products originating from the European Union, and has decided to take temporary anti subsidy measures. Can you provide detailed information on the investigation?

Answer: In response to domestic industry applications, the Ministry of Commerce launched a countervailing investigation on imported dairy products originating from the European Union on August 21, 2024. On August 18, 2025, the Ministry of Commerce issued an extension notice, extending the investigation period of the case to February 21, 2026.

After the case was filed, the investigating authority conducted the investigation openly and transparently in accordance with the law through a variety of ways and procedures, including issuing questionnaires and supplementary questionnaires, listening to comments, holding hearings, conducting on-site inspections of the EU and its member states' governments and sample enterprises, and conducting on-site investigations of Chinese domestic enterprises, which fully guaranteed the rights of all stakeholders.

After more than a year of careful investigation, preliminary evidence shows that the EU has provided significant subsidies to agricultural sectors such as the dairy and dairy products industry through subsidy programs such as the Common Agricultural Policy. During the investigation period, domestic industries in China were affected by imported EU subsidized products, resulting in a continuous increase in inventory and a shift from profit to loss, leading to difficulties in production and operation. The investigating authorities preliminarily believe that there are subsidies for dairy products related to the European Union, which have caused substantial damage to China's domestic industry, and the causal relationship between the two is established. Based on this, the Ministry of Commerce issued a preliminary ruling announcement on December 22, 2025, deciding to implement temporary anti subsidy measures.

Based on the response information submitted by the European Commission and the sampled companies, as well as on-site verification, we have preliminarily determined that the tax rate for the sampled companies is 21.9% -42.7%. Other EU companies that cooperate with the investigation will be subject to a uniform tax rate of 28.6%, while other EU companies that do not cooperate with the investigation will be subject to a tax rate of 42.7%.

I would like to reiterate that China has always been cautious and restrained in using trade remedy measures. Since 2025, China has not initiated any new trade remedy investigations against the European side, and has only made final rulings on three anti-dumping cases involving brandy, formaldehyde copolymer, and pork. However, during the same period, the European Union has made preliminary rulings on 18 trade remedy cases against China, imposed final rulings on 18 cases, and initiated 15 trade remedy investigations. Only on Friday (December 19th), three new investigations into China were launched. The Chinese side's stance against the abuse of trade remedy measures remains unchanged, and is also willing to handle trade frictions properly through dialogue and consultation with the European side, jointly safeguarding the overall situation of China Europe economic and trade cooperation.

Next, we will continue to conduct follow-up investigations in strict accordance with relevant Chinese laws and regulations and WTO rules, and make the final ruling based on the principles of fairness, impartiality, openness, and transparency, fully safeguarding the rights of all stakeholders.