China has launched an anti-dumping investigation into brandy imported from the EU, escalating trade tensions following the EU's anti-subsidy investigation into Chinese electric car manufacturers. The investigation will focus on brandy products that come from the EU in containers smaller than 200 liters, according to the Chinese Ministry of Commerce. The investigation stems from a complaint filed by the China Alcoholic Beverages Association on behalf of the domestic brandy industry, it added.

"The complaint fulfills the conditions for the initiation of an anti-dumping investigation," said a spokesperson for the ministry. In September, the EU launched an anti-subvention investigation against Chinese manufacturers of electric vehicles because it was concerned about the impact of low-price products from China on the domestic industry.