China Hits Back: Commerce Ministry to Investigate EU's Trade Practices

China's Commerce Ministry announced an investigation into the European Union's trade practices, focusing on wind power, photovoltaics, and security equipment. This move is a retaliation against the EU's probes into Chinese companies and its recent imposition of tariffs on Chinese electric vehicles.

China's Commerce Ministry announced Wednesday the launch of an investigation into whether unfair trade practices were adopted by the European Union in its probe of Chinese companies.

The investigation will focus on wind power, photovoltaics, security equipment, and other sectors. It is expected to be completed by January 10, with a possible extension to April.

This move follows a request from China's Chamber of Commerce for Import and Export of Machinery and Electronic Products and appears to be a direct response to recent EU probes into Chinese companies.

The EU's probes have primarily targeted Chinese wind turbine companies and solar panel makers, scrutinizing whether Chinese subsidies offer an unfair competitive edge in the European market.

China has accused the EU of protectionism after the European Commission increased tariffs on Chinese electric vehicles, claiming the move distorts the definition of subsidies.

(With inputs from agencies.)