CHINA has found some European Union countries subsidized its potato starch exporters, the Ministry of Commerce said in a statement today.
The announcement came just a few days after the EU slapped its first anti-subsidy and anti-dumping duties on coated fine paper from China, signaling a renewed trade war.
The ministry said its preliminary ruling found companies in EU countries received subsidies averaging 11.19 percent.
It did not say whether China will immediately impose a countervailing duty on EU exports of potato starch, which is widely used as a thickener for sauces, soups and stews.
This preliminary ruling was done at the request of Potato Starch Specialty Council under the China Starch Industry Association last June.
The ministry has started to collect an anti-dumping duty of up to 56.7 percent on EU potato starch since April 19, 2011.
It may be coincidence that the announcement came just days after the EU revealed its punitive duty scheme against China.
The economic bloc said last week it will charge duties ranging from 4 to 12 percent for five years as an anti-subsidy tariff on imports of coated fine paper from China, and a separate five-year anti-dumping levies ranging from 8 to 35.1 percent.