China has launched anti-dumping and anti-subsidy investigations into imports from the US of distillers' dried grains with or without solubles (DDGS), Reuters reported citing a statement by the country’s ministry of commerce.
DDGS is a co-product of corn ethanol production that is used as a feed ingredient.
The probe will look into subsidies and alleged dumping in the period from October 1, 2014 to September 30, 2015. It has been initiated at the request of the China Alcoholic Drinks Industry Association. The latter has complained that the local DDGS industry had suffered serious damage as in recent years large amounts of cheap US DDGS, backed by US government subsidies, had been dumped on the Chinese market.
China is the largest importer of DDGS and the US is the largest exporter. The value of Chinese imports from the US was almost USD 1.9 billion (EUR 1.7bn) netween January and November 2015, Reuters said.
Chinese buyers have already reduced imports of DDGS from the US in anticipation of the probe.
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