The U.S. Department of Commerce (DOC) recently issued a preliminary ruling, in itsreview of four countervailing investigations into laminated woven sacks and otherproducts imported from China, to deem most of China’s state-owned enterprises(SOEs) as public bodies. The ruling means that the United States will consider ChineseSOEs’ sales as subsidies from public bodies to downstream companies, and thusimpose countervailing duties on imports of the products of these downstream companies.