The Ministry of Commerce Photo: VCG

China's Ministry of Commerce (MOFCOM) announced on Wednesday the decision to launch a countervailing investigation into certain dairy products originating in the EU, with immediate effect.

This investigation started on Wednesday and should usually be completed before August 21, 2025, said the MOFCOM, noting that it can be extended for six months under special circumstances.

In response to media questions, an official of the Trade Remedy and Investigation Bureau of the MOFCOM said on Wednesday that the investigation was initiated in response to the domestic industry's application.

After receiving the application, the investigating authority reviewed it in accordance with relevant Chinese laws and regulations and following WTO rules, the official said.

After the review, the authority determined that the application met the criteria for initiating an anti-subsidy investigation, and decided to proceed with the investigation. 

The investigating authority will conduct the investigation in accordance with the law, fully safeguard the rights of all interested parties, and make an objective and fair decision based on investigation results, the MOFCOM official said.

China's probe into certain dairy products from the EU is based on WTO rules, which is in stark contrast with the EU's unilateral move on Chinese electric vehicles, Yang Chengyu, an associate research fellow at the Institute of European Studies of the Chinese Academy of Social Sciences, told the Global Times on Wednesday.

This came as the Global Times learned exclusively, in June, from a business insider that relevant Chinese industries were preparing evidence, as they planned to apply to competent authorities to launch an anti-subsidy investigation into imports of relevant dairy products from the EU.

Commenting on the reported plans of Chinese industries to apply for an anti-subsidy investigation into EU dairy products and an anti-dumping probe into certain EU pork items, a spokesperson of the MOFCOM said in June that Chinese industries have the right to file applications for anti-subsidy and anti-dumping investigations, and relevant authorities will review the applications and file cases in accordance with the law.

On July 29, the MOFCOM received a formal application from the Dairy Association of China and the China Dairy Industry Association on behalf of the domestic dairy industry to launch a countervailing probe.

A customer is selecting imported dairy products at a supermarket File photo: VCG

On August 7, the MOFCOM issued, in accordance with corresponding laws and regulations, an invitation for consultations to the EU on relevant countervailing investigation matters, and it held consultations with the EU on August 14.

In the submitted application, industry groups claimed that the EU and its member states have provided a total of 20 subsidy programs to the EU-related dairy industry. After a preliminary review and consideration of the claims made by the EU member governments during pre-filing consultations, the MOFCOM decided to investigate seven subsidy programs under the EU's Common Agricultural Policy, as well as 20 subsidy programs implemented by EU member states, including those provided by Austria, Italy and Finland.

According to the evidence provided by the applicants and the preliminary review of the MOFCOM, the total output of the relevant dairy products accounted for the main part of China's total output of similar products in the same period from 2020 to 2023 and the first quarter of 2024.

Such a result was in compliance with Articles 11 and 13 of the "Countervailing Regulations of China." The investigation period for certain dairy products was from April 1, 2023 to March 31, 2024, and the industrial damage investigation period was from January 1, 2020 to March 31, 2024.

Parties and governments of interested countries (regions) should register with the Trade Remedy and Investigation Bureau of MOFCOM to participate in this countervailing investigation within 20 days from the date of this announcement, according to the MOFCOM.

In accordance with Countervailing Regulations of China, the ministry may use questionnaires, sampling, hearings and on-site inspections among other means to learn about the situation from relevant interested parties and the governments of interested countries and regions, and conduct investigations.