WASHINGTON, D.C., U.S. — On Dec.15 the Chinese authorities notified the U.S. that they are  considering an antidumping and countervailing duty investigation against distiller’s dried grains with or without solubles (DDGS originating from the U.S.).

China’s Ministry of Commerce (MOFCOM) notified the U.S. Embassy in Beijing, China that it has formally accepted petitions from Chinese DDGS producers, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) said.

“We are disappointed to see today the initiation of anti-dumping and countervailing duties investigations of U.S. DDGS exports to China,” Thomas N. Sleight, president and chief executive officer (CEO) of the U.S. Grains Council (USGC). “We believe the allegations by the Chinese petitioners are unwarranted and unhelpful. They could have negative effects on U.S. ethanol and DDGS producers, as well as on Chinese consumers, potentially over a period of many years. We are also confident that our trading practices for DDGS, ethanol and all coarse grains and related products are fair throughout the world. We stand ready to cooperate fully with these investigations and will be working closely with our members to coordinate the U.S. industry response.

Under Chinese regulations, MOFCOM is required to make a decision on whether to initiate an investigation within 60 days of accepting a petition. However, MOFCOM often takes substantially less than the maximum 60 days to announce an investigation.

Chinese importers have been purchasing large quantities of U.S.-origin DDGS in recent years in response to high Chinese domestic corn prices.

“The U.S. Grains Council has worked in China since 1981 to find solutions to the challenges of food security through development and trade,” said Sleight. “There have been measureable positive effects of this work for the Chinese feed and livestock industries and Chinese consumers. We and our members will work vigorously in the coming months to demonstrate that the allegations being investigated by MOFCOM are false, even while we continue to stand ready to expand our cooperation with China on agricultural issues of mutual benefit.”

U.S. DDGS exports to China slowed, but did not stop, after China filed an antidumping case against U.S. DDGS in late 2010. China later dropped that case in 2012.