In December 2023, the European Commission issued a notice initiating a countervailing investigation into certain alkyl phosphate esters (APE) imported from China, following an application by a complainant (running in parallel with anti-dumping proceedings). In this case, we represented the government of the People’s Republic of China and participated in the defense throughout the entire process. As a specialty chemical with a highly precise technical definition, the product under investigation is defined by physical and chemical indicators including side-chain length, phosphorus content and viscosity range, and is identified for customs purposes using ex CN codes. This results in a dual system of technical definition and customs classification, and the case involves a substantial value with significant implications for the industry.

In this case, the European Commission conducted its investigation focusing on traditional countervailing issues, covering preferential financing (including policy-based lending), various forms of financial grants, tax reductions or exemptions, and the provision of inputs such as land and electricity at less than adequate remuneration (LTAR), among other areas. In response to the above allegations, we conducted systematic factual verification and legal analysis, concentrating on establishing the existence and verifiability of the three core elements of financial contribution, benefit and specificity, and continuously submitted extensive regulatory materials and data evidence. During the defense process, the complaining party ultimately withdrew its countervailing complaint. On this basis, the European Commission terminated the countervailing proceedings in accordance with the law, without issuing any adverse final findings or imposing countervailing duties. The case achieved a favorable outcome of “procedural termination with zero duties”, effectively safeguarding market stability and predictability for the relevant Chinese chemical industry in its exports to the EU. This case represents a major victory for China in responding to trade remedy investigations by the European Union, and carries important exemplary significance and far-reaching impact.

Note: This case belongs to the attorney team's portfolio and is not a case of Grandwin.