The Ministry of Commerce of China File photo: VCG

China ruled on Monday that certain dairy products from the European Union (EU) are subsidized, and it will slap provisional duties of 21.9 percent to 42.7 percent on certain dairy products imported from the EU starting on December 23, following a preliminary anti-subsidy probe that began more than a year ago, according to the Ministry of Commerce (MOFCOM). 

The MOFCOM announced Monday that the investigating authority has preliminarily determined that certain dairy products from the EU are subsidized, that China's domestic dairy industry has suffered material injury, and that there is a causal link between the subsidies and the material injury. 

Starting from December 23, provisional countervailing measures will be imposed on the corresponding products in the form of a security deposit for provisional countervailing duties, per the MOFCOM.

On August 21, 2024, at the request of the China Dairy Association and the China Dairy Industry Association, the MOFCOM initiated a countervailing investigation into certain dairy products imported from the EU, said a spokesperson of the MOFCOM on Monday responding to media inquiry regarding the ruling.

Following the initiation of the case, the MOFCOM conducted the investigation in a fair, impartial, open, and transparent manner, in strict accordance with Chinese laws and regulations as well as relevant World Trade Organization rules, fully safeguarding the rights of interested parties, the spokesperson said.

Preliminary ruling shows certain EU dairy imports are subsidized and have caused material injury to China's domestic industry, said the spokesperson.

In accordance with the relevant provisions of the China's regulations on countervailing measures, the MOFCOM released its preliminary ruling announcement on December 22, 2025, determining ad valorem subsidy rates for EU companies ranging from 21.9 percent to 42.7 percent, and decided to impose provisional countervailing measures, according the ministry's spokesperson.

Also on the same day, responding to media questions on the preliminary ruling, a head of the trade remedy and investigation bureau of the MOCOM reiterated that China has consistently exercised caution and restraint in using trade remedy measures.

Since the beginning of 2025, China has not initiated any new trade remedy investigations on the EU, only issuing final rulings on three anti-dumping cases concerning brandy, polyformaldehyde copolymer, and pork, said the MOFCOM official.

In the same period, the EU has imposed provisional duties in 18 trade remedy cases against China, issued final duties in 18 cases, and launched 15 new trade remedy investigations, including three initiated against China on Friday, December 19 alone, according to the official. 

On a further note, the MOFCOM official said that China's position against the abuse of trade remedy measures remains unchanged, and it is willing to properly handle trade frictions with the EU through dialogue and consultation, jointly safeguarding the overall situation of China-EU economic and trade cooperation.

Looking ahead, the official said that China will continue to carry out subsequent investigations strictly in accordance with its relevant laws and regulations and WTO rules, making final rulings based on the principles of fairness, justice, openness, and transparency, while fully safeguarding the rights of all stakeholders.

Global Times