On August 21, 2024, the Ministry of Commerce of China issued an announcement on anti-subsidy investigation into imports of relevant dairy products originating in the European Union, which reads in part as follows:

On 29 July 2024, the Ministry of Commerce of the People's Republic of China (hereinafter referred to as the Ministry of Commerce) received the application for countervailing duty investigation formally submitted by the China Dairy Association and the China Dairy Industry Association (hereinafter referred to as the applicant) on behalf of the domestic dairy industry, and the applicant requested to conduct a countervailing duty investigation into imports of relevant dairy products originating in the European Union. In accordance with Article 16 of the Anti-Subsidy Regulations of the People's Republic of China, on August 7, 2024, the Ministry of Commerce issued an invitation to the EU government for consultation on matters related to the anti-subsidy investigation, and held consultations with the EU government on August 14.

In accordance with the relevant provisions of the Anti-Subsidy Regulations of the People's Republic of China, the Ministry of Commerce reviewed the qualifications of the applicants, the relevant information about the products applied for investigation, the relevant information about similar products in China, the impact of the products applied for investigation on the domestic industry, and the relevant information about the countries (regions) applied for investigation.

based on the evidence provided by the Applicant and the preliminary review by the Ministry of Commerce, the combined production of the Applicant's relevant dairy products in 2020, 2021, 2022, 2023 and the first quarter of 2024 accounted for a major part of the total production of similar products in China during the same period. In accordance with the provisions of Article 11 and Article 13 of the Anti-Subsidy Regulations of the People's Republic of China concerning the application for anti-subsidy investigation by domestic industries.

The application claims that the products applied for investigation have received subsidies from the governments of the EU and its member states, and there are a total of 20 subsidy projects that may benefit the relevant dairy industry (enterprises) in the EU. After preliminary review, the Ministry of Commerce believes that the application contains the contents and relevant evidence required for the filing of countervailing investigations as stipulated in Articles 14 and 15 of the Anti-Subsidy Regulations of the People's Republic of China.

According to the above review results, in accordance with the provisions of Article 16 of the Anti-Subsidy Regulations of the People's Republic of China, the Ministry of Commerce has decided to initiate an anti-subsidy investigation into imports of relevant dairy products originating in the European Union from August 21, 2024. The relevant matters are hereby announced as follows:

Ⅰ. Filing investigation and investigation period

Since the date of this announcement, the Ministry of Commerce has launched an anti-subsidy investigation into the import of relevant dairy products originating in the European Union, and the subsidy investigation period determined by this investigation is from April 1, 2023 to March 31, 2024, and the industry injury investigation period is from January 1, 2020 to March 31, 2024.

Ⅱ. Products under investigation and scope of investigation

Scope of investigation: imports of relevant dairy products originating in the EU.

Product name under investigation: Related dairy products.

English name: Certain dairy products.

Product Description: The relevant dairy products specifically include fresh cheese (including whey cheese) and curds, processed cheese (whether or not grated or pulverized), blue cheese and other textured cheese produced by Penicillium loudiae, other cheese not listed, milk and cream not concentrated and not sweetened or otherwise sweetened (fat content exceeding 10% by weight).

Main use: mainly used as food directly or after processing for human consumption.

This product belongs to the import and Export Tariff of the People's Republic of China: 04015000, 04061000, 04062000, 04063000, 04064000, 04069000.

Ⅲ. Countervailing investigation projects

In the application submitted, the applicant claims that the EU and its member State governments provide a total of 20 subsidy projects to the relevant dairy industry (enterprises) in the EU. After a preliminary review and taking into account the claims made by the EU government in the pre-filing consultations in accordance with the law, the Ministry of Commerce decided to investigate the following subsidy projects in this investigation:

(a) Subsidies under the EU's Common Agricultural Policy:

1. Voluntary linked subsidies and income-linked subsidies

2. Basic payment schemes and sustainable basic income subsidies

3. Green subsidies and ecological plan subsidies

4. Redistributive subsidies and sustainable supplementary redistributive income subsidies

5. Subsidies for young farmers and supplementary income subsidies for young farmers

6. Related dairy storage subsidies

7. A range of interventions for rural development

(b) Subsidy projects implemented by EU Member States

8. Ireland - Dairy Equipment subsidy Scheme

9. Austria - Liquidity Subsidy Scheme

10. Austria - Bridge Loan Guarantee Scheme

11. The Belgian-Flemish Bridge Loan Scheme

12. Italy - Livestock insurance subsidies

13. Italy - Dairy logistics subsidies

14. Croatia - Subsidies for livestock producers

15. Croatia - Raw milk procurement cost subsidy

16. Finland - Compensation for damage to agricultural producers

17. Finland - Cost subsidies for the agriculture and aquaculture sector

18. Finland - Cost subsidies for dairy producers

19. Romania - Livestock administrative subsidies

20. Czech Republic - Compensation for damage to agricultural producers

...

Ⅹ. Duration of investigation

The investigation begins on August 21, 2024 and should normally be concluded by August 21, 2025, with an extension of six months in exceptional circumstances.

For the original announcement: https://www.mofcom.gov.cn/zwgk/zcfb/art/2024/art_0f008c8cc1a64811821d0bb87cfeb34b.html