The European Commission launched an anti-subsidy investigation into tyres for cars and lighter trucks and buses from China on Thursday, citing sufficient evidence that Chinese producers were receiving unfair benefits from the government.

The investigation comes on top of an ongoing anti-dumping review of the same product that the EU executive launched in May. It is one of 17 new probes the European Commission is carrying out into Chinese products to limit a surge of imports at the risk of further straining bilateral relations.

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