The Chinese government announced on Wednesday that it would look into whether the European Union’s (EU) investigations into Chinese companies are “trade barriers.”

Western countries are worried that cheap Chinese imports, supported by government subsidies, might harm their jobs and key industries. Earlier this year, the EU started examining China’s financial help for its wind turbine and solar panel producers.

Recently, the EU also finished an eight-month investigation into China’s support for electric vehicle (EV) manufacturers, leading to extra tariffs on EVs from China.

China’s Ministry of Commerce (MOFCOM) will now see if these EU investigations break their economic agreement and harm trade with the 27 EU countries. This probe will cover several areas like rail, solar power, wind energy, and security inspection equipment.

If MOFCOM finds the EU’s actions to be “trade barriers,” it could start talks with the EU, begin a multilateral dispute process, or take other steps according to its 2005 rules.

This move comes shortly after the EU imposed temporary tariffs on Chinese-made EVs. If discussions between the EU and China don’t succeed, these tariffs will become permanent in November.

China has strongly opposed the EU tariffs and is taking actions to protect its interests. Recently, China started looking into EU pork and brandy imports.

The new investigation by MOFCOM is a response to a June request from a Chinese industry group and is expected to finish by January 10. The investigation will include surveys, hearings, and on-site checks.

This news highlights the growing trade tensions between China and the EU, as both sides take measures to protect their economic interests.

[Source: CNN]

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