EU starts anti-subsidy probe into Chinese tyres

BRUSSELS (Reuters) -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.

The Coalition Against Unfair Tyre Imports, comprising EU producers, said in its complaint that Chinese imports had risen by 51% since 2021 at prices 30-65% below those of EU manufacturers, whose sales had suffered.

It says subsidies received by Chinese producers include grants, preferential loans, tax exemptions and provision of land and electricity at below-market prices.

The Commission is bound to conclude its investigation within 13 months and can impose provisional duties within nine.

(Reporting by Philip Blenkinsop; Editing by Richard Chang)