China has retaliated after the EU imposed additional tariffs on electric vehicles. (Source: AFP)

The investigation will be conducted through questionnaires, public hearings and field inspections and will be completed by January 10, 2025, the ministry added.

Officials from China's Ministry of Commerce said they decided to launch the investigation after receiving a complaint from the National Chamber of Commerce for Import and Export of Machinery and Electronic Equipment. The complaint mainly covered "products such as locomotives, photovoltaics, wind power and security inspection equipment."

Beijing's move comes after the EU announced additional tariffs on Chinese electric vehicles.

On July 4, the EU imposed a temporary additional 38% tariff on electric cars imported from the world's second largest economy because of "unfair state subsidies", despite warnings that the move would spark a trade war.

Accordingly, the 27-member bloc has imposed temporary tariffs on Chinese electric vehicle manufacturers, including 17.4% for BYD, 19.9% ​​for Geely and 37.6% for SAIC.

The tariffs take effect from July 5.

Chinese electric vehicle makers working with the EU will be subject to a 20.7% tariff, while non-partners will be subject to a 37.6% tariff.

"Our investigation concludes that battery electric vehicles produced in China benefit from unfair subsidies that cause economic harm to EU electric vehicle manufacturers," EU Trade Commissioner Valdis Dombrovskis said.