THE European Union is launching an anti-dumping investigation into cheap plywood imports after complaints by the bloc's domestic producers, opening another front in its trade conflict with China, reports London's Financial Times.

EU producers say there has been a surge in cheap hardwood plywood coming from China, much of which they believe originates in Russia. Brussels banned Russian wood imports after its full-scale invasion of Ukraine in February 2022.

The probe follows the EU's imposition of tariffs of up to 45 per cent on Chinese electric vehicles last week. China responded to that with provisional tariffs on EU brandy exports and had already opened anti-dumping probes into pork and dairy products,

The move has sparked fears by EU member states of an extended cycle of retaliatory moves on important products, while China argues the EU is being protectionist. As tensions heighten, the two sides have also filed multiple challenges to the other's trade defence measures at the World Trade Organisation.