China Launches Investigation into EU's Trade Practices Amid Rising Tensions

China's Commerce Ministry has announced an investigation into the European Union's trade practices. The investigation will focus on industries like wind power and photovoltaics and may extend until April. This move comes as an apparent retaliation to the EU's recent probes into Chinese companies and accusations of subsidy-related unfair advantages.

China's Commerce Ministry announced on Wednesday the launch of an investigation to determine whether the European Union has adopted unfair trade practices in its probe of Chinese companies.

This investigation, requested by China's Chamber of Commerce for Import and Export of Machinery and Electronic Products, will focus on sectors including wind power, photovoltaics, and security equipment. The probe is scheduled to conclude by January 10, with a possible extension to April.

The announcement follows the EU's recent probes into Chinese companies, which sparked accusations from China of protectionism and “reckless distortion” of subsidy definitions. The European Union had earlier increased tariffs on Chinese electric vehicles, further intensifying trade tensions.