China is targeting the EU's agricultural exports as a response to tariffs on China-made electric cars.
China's Ministry of Commerce announces that it is launching an investigation into whether the EU is subsidizing dairy products exported to China. This could lead to the country imposing tariffs on imports. The Chinese authorities are expected to make a decision within a year.
Similar measures, in the escalating trade war between China and the EU, targeted pork imports from the EU last summer.
On Tuesday, the EU Commission released a proposal on how high import tariffs will be on different electric car brands made in China.