Chinese authorities have launched an anti-subsidy investigation into European dairy imports, in the latest sign of escalating trade tensions between Brussels and Beijing.

The announcement from China’s commerce ministry on Wednesday came a day after the European Commission revealed revised duties on Chinese electric vehicles as part of its examination into what it views as artificially cheap cars that pose a threat to jobs in Europe’s motor industry.

The China Chamber of Commerce to the EU said Beijing’s investigation was launched after a complaint from the country’s dairy industry on 29 July and said consultation with the EU had taken place on 14 August.

China will examine 20 subsidy programmes supporting the production of milk, cream and cheese from across the 27-member bloc, including those in countries with large farming sectors, such as Austria, Italy, Ireland and Romania.

Germany is the EU’s largest milk producer, followed by France, Italy and Poland. But Ireland is by far the biggest exporter to China among the EU countries listed by the commerce ministry, having provided $461m of goods last year, according to Reuters.

Beijing has already launched retaliatory competition inquiries into politically sensitive European imports of pork and Cognac.

The European Commission said it took note of China’s decision to launch the investigation on imports of certain dairy products.

“The Commission will now analyse the application and will follow the proceeding very closely, in coordination with EU industry and member states,” a spokesperson said.

“The Commission will firmly defend the interests of the EU dairy industry and the common agricultural policy, and intervene as appropriate to ensure that the investigation fully complies with relevant WTO rules.”

Earlier this week the EU’s top diplomat, Josep Borrell, said the EU should avoid a “systemic confrontation” with China, but warned that it was possible that a trade war could be inevitable.

By the end of October Chinese carmakers that have failed to cooperate with the EU’s electric vehicles investigation could face a tariff of up to 36.3%, on top of the existing 10% EU duty on cars.

After an investigation, the European Commission said that Chinese authorities have provided lavish subsidies to electric vehicle manufacturers at every stage of the production process, making the cars so artificially cheap that European rivals could in future be forced to shutter factories and lay off workers.

EU officials have launched separate anti-dumping inquiries into Chinese-made solar panels and wind turbines.