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     Since the Ministry of Commerce of the People′s Republic of China issued No. 46 Announcement - on Initiating an Investigation on Imported Sugar Safeguard Measures (2016) on Sep. 22, 2016, we have paid close attention to this case and proceeded with the preparation of relevant information in this case, and have cooperated actively with the Trade Remedy and Investigation Bureau′s work.
     In this case, Guangxi Sugar Industry Association on behalf of the domestic sugar industry formally submitted the Application for Investigation on Sugar Industry Safeguard Measures of the People′s Republic of China; the applicant requested an investigation into the safeguard measures of imported sugars. The Ministry of Commerce has conducted a review on qualification of the applicant, relevant information about the products to apply for investigation, relative conditions of similar products or direct competition products in China, growth in the quantity of products to apply for investigation and the impact on the domestic industry in accordance with the relevant provisions of the Regulations of the People′s Republic of China on Safeguard Measures.
    In this case, the applicant believes that sharp increase in the quantity of imported sugars has an impact on China′s domestic industry. China′s domestic industry operating rate, sales volume, market share, sales revenue, pre-tax profits and other indicators of production and management deteriorate, China′s domestic industry has been seriously damaged, and there is a causal relationship between the increase in the import quantity of products to apply for investigation and the serious damage to domestic industries in China. Therefore, we initiate safeguard measures to the Ministry of Commerce.
    Some analysts said that once the investigation is true, it can be submitted to the WTO to apply for increased protection of domestic sugar companies, such as tariff increase. However, in the case of deepening integration of domestic and foreign markets, the sugar industry also needs to simultaneously accelerate the reform of supply side, and achieve transformation and upgrading through management and technological innovation.
     During the investigation, the Trade Remedy and Investigation Bureau has issued a questionnaire on sugar safeguard measures and held a hearing on investigation of sugar safeguard measures. The case is still going on. We will pay close attention to relevant information.