The European Commission has announced the initiation of anti-subsidy proceedings concerning imports of new pneumatic tires used on cars, buses or lorries from China. The investigation covering tires with a load index not exceeding 121, follows a complaint that these products are being subsidized and are thereby causing injury to the EU industry. The alleged subsidy practices include direct transfer of funds, provision of goods or services and preferential loans, as well as grants and tax exemptions, provision of land and help with electricity and other operating costs.

The Commission also noted its separate, ongoing anti-dumping investigation covering the same product. The product scope aligns with CN codes previously identified in the anti-dumping case launched earlier this year. According to the Commission, both proceedings will run in parallel, though the subsidy investigation can result in separate or combined measures depending on findings. The Commission said it may introduce registration of imports at a later stage, which could allow for retroactive duties if "significant injury" is confirmed during the investigation period.