China announced Monday it would investigate whether the European Union (EU) members subsidized exports of potato starch to China, and if so to what extent the subsidies had harmed domestic industries.

It is China's first anti-subsidy probe into imports from the EU.

The Ministry of Commerce said in a statement posted on its website that it had received the anti-subsidy probe application submitted by the China Starch Industry Association on June 30.

It had reviewed the applicant and related products, the MOC said.

According to the statement, the investigation would initially focus on whether the subsidies exist. It would then look at the subsidy margin and degree of harm brought by the subsides to the Chinese domestic industry.

The ministry said it would conduct the probe in a fair and transparent way, in line with the rules of the World Trade Organization and domestic trade laws.

(Xinhua News Agency August 30, 2010)