U.S. Finds China Provides Subsidies on L-Lysine Exports

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The U.S. Department of Commerce has made a final decision regarding an investigation into L-lysine (lysine) exports from China. This decision found that Chinese producers and exporters receive countervailable subsidies. This investigation focused on activities from January 1, 2024, to December 31, 2024.

What is L-Lysine?

Lysine is an essential amino acid. It is often added to animal feed to help in protein synthesis. The investigation covered lysine in all forms, including lysine monohydrochloride, lysine sulfate, and liquid lysine.

Investigation Findings

The Commerce Department determined that Chinese lysine producers benefited from subsidies. These subsidies allow them to export lysine at lower costs. Inner Mongolia Eppen Biotech Co., Ltd. was the main company investigated.

Evidence showed financial contributions that helped these companies, making their exports unfairly cheap. The investigation also found that these subsidies were specific, meaning they were not available to all.

Impact on Chinese Companies

Different rates were calculated for the subsidies. Inner Mongolia Eppen Biotech Co. Ltd. was given a 48.21% subsidy rate. Two other companies, Helionjiang Wanli Runda Biotechnology Co., Ltd., and Shouguang Golden-land Industry & Trading Co Ltd., received a higher rate of 82.11%. This was based on adverse facts available.

Future Actions

The Commerce Department instructed U.S. Customs and Border Protection to collect deposits for these duties since January 22, 2026. If the U.S. International Trade Commission (ITC) confirms injury to U.S. industry, duties will continue to be applied. If not, the deposits will be refunded.

The ITC will decide within 45 days if the U.S. industry is harmed by these imports. If they find injury, a countervailing duty order will be issued. If not, the investigation will be closed, and no duties will be imposed.

This decision marks a significant step in addressing trade imbalances. It aims to ensure fair competition for U.S. businesses.

Legal Disclaimer

This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.