Trade tensions between China and the European Union are escalating further. China has warned that it could launch anti-discrimination and supply-chain security investigations against the EU if the bloc moves ahead with plans to restrict imports of heavily subsidized foreign products.

The warning was issued through a social media account linked to China’s state broadcaster. Beijing claims the EU’s proposed “overcapacity instrument” unfairly targets Chinese companies and products. The dispute comes amid ongoing disagreements over electric vehicles and green technology exports, raising concerns about a wider global trade conflict.