China has ruled that certain dairy products imported from the European Union are subsidized and will impose provisional countervailing duties ranging from 21.9% to 42.7% starting December 23, the Ministry of Commerce (MOFCOM) said on Monday.

MOFCOM said its investigating authority has made a preliminary determination that the subsidized EU dairy products have caused material injury to China’s domestic dairy industry, and that there is a causal link between the subsidies and the damage suffered.

From December 23, the provisional countervailing measures will be implemented in the form of security deposits equivalent to the applicable duties on the affected products, the ministry said.

The countervailing investigation was launched on August 21, 2024, following applications submitted by the China Dairy Association and the China Dairy Industry Association, according to a MOFCOM spokesperson responding to media inquiries.

Since the case was initiated, the investigation has been carried out in a fair, impartial, open, and transparent manner, in strict accordance with Chinese laws and regulations as well as relevant World Trade Organization rules, the spokesperson said, adding that the legitimate rights and interests of all parties involved have been fully safeguarded.