Representatives from EU capitals gave majority backing to the duties, worth up to 39.1 percent, during a meeting in Brussels, the sources said. The duties are to be launched by May 17, replacing provisional duties in place since late last year.
The European Union's executive Commission proposed the long-term duties after it ruled that China gives illegal subsidies to its paper makers, and that exporters dump paper on the EU market at artificially low prices. China has denied this.
Although the sector is small -- Europe imported about 130 million euros' worth of Chinese coated fine paper in 2009 for brochures and coffee-table books -- its challenge could trigger similar moves in other areas, particularly since the EU has vowed to take on Chinese state subsidies that put EU producers at an unfair disadvantage.
"There is a general feeling that the Chinese are subsidising a lot, so there is an interest in sending a political signal that this will be tackled," said one source.
"Now the question is whether China will start a legal challenge," the source said.
China may challenge the EU's anti-dumping and anti-subsidy duties at the World Trade Organization. Beijing scored an important victory there earlier this month, when the WTO ruled that the United States had broken international trade law when it applied dual duties to certain Chinese goods.
The EU Commission, which leads EU trade policy, has said its dual duties are legal.
The Chinese operations of Indonesia's Asia Pulp & Paper (APP) face a duty of 20 percent, the sources said.
Despite the reduced rate, APP said it was disappointed by the planned duties, which it said were based on "serious legal and factual flaws."
"APP will carefully review the regulations ... and will consider all legal options available," APP's head of European Business Development Jukka Kantola said in a statement.
Under global trade law, companies may challenge anti-dumping duties, while it is up to states to challenge duties set on findings of state aid.
The dual duties will benefit European paper producers including the European operations of South African paper maker Sappi. (Reuters)
