(Bloomberg) — China said European Union measures to protect its companies from foreign subsidies are a barrier to trade and investment, marking the latest clash in the ongoing trade dispute between the two sides.

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The Commerce Department published the findings of its investigation into the EU’s Foreign Subsidies Regulation on Thursday, highlighting “selective implementation” as a major concern. The investigation began in July last year after the EU began looking into Chinese subsidies for electric vehicles.

Beijing did not specify any action it plans to take following the investigation’s findings. He previously said that if foreign policies were determined to be trade barriers, the ministry could hold bilateral talks, initiate multilateral dispute settlement and take “other appropriate measures.” The ministry also said such steps could involve recommending “retaliatory measures”.

At a briefing later in the day, ministry spokesman He Yadong said Beijing would take steps such as asking the EU for talks, without providing details.

China’s investigation comes amid a wider trade dispute with Brussels, where the EU has imposed tariffs of up to 45% on Chinese-made electric vehicles after determining that state subsidies were giving the vehicle industry China’s power plants an unfair advantage.

China said on Thursday that the EU has launched in-depth probes into only Chinese companies involved in public procurement, along with surprise inspections and other strict enforcement measures against Chinese companies.

This means that “Chinese products are being treated more unfavorably in the export process to the EU than products from third countries,” the Trade Ministry said.

Jens Eskelund, president of the European Union Chamber of Commerce in China, defended the regulation as “country agnostic” in a statement after Beijing’s decision. He said the move is “aimed at countering the distortive effects that subsidies can have, with the aim of ensuring a level playing field for businesses in the EU’s single market”.

The rules give Brussels the power to verify subsidies it deems capable of distorting markets in the 27-member bloc. Regulators can issue fines, suspend tenders or block state procurement outright.

Under that law, the EU launched an investigation last year into a Chinese train manufacturer that planned to sell trains to Bulgaria, prompting the company to withdraw. The European Commission also raided the offices of Chinese security equipment supplier Nuctech in Poland and the Netherlands last year.

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