- The probe examines European exports of solar-grade polysilicon, a key material used in the making of solar cells
- China will look at whether firms sold product at artificially low prices in China
- The dispute escalated after the EU launched an investigation of China exports of solar panels into the European Union
China announced Thursday a trade investigation into European exports of solar-grade polysilicon, escalating a bitter trade row with the EU which has unveiled a similar probe into Chinese products.
The probe into the product, a key material used in the making of solar cells, is the latest in a series of trade disputes between China and its Western trading partners on a variety of products, including autos, steel and rare earth minerals.
The commerce ministry said in a statement that it would examine whether firms from the European Union sold the products at artificially low prices in China.
It will also investigate alleged subsidies received by the EU producers and exporters and probe any damages caused to Chinese companies. The findings will help the ministry "come to a just ruling according to the law."
The probes were launched after complaints by Chinese polysilicon producers that included claims that EU firms received German government subsidies and favorable loans from the European Investment Bank, a separate ministry statement said.