The European Commission on Friday launched an anti-subsidy investigation into imports of Chinese hot-rolled flat steel, which has been the subject of an anti-dumping investigation since February.

The announcement follows shortly after the European Parliament passed a non-legislative resolution that China should not be given a market economy status in the end of this year, at the end of its 15 years of transition to World Trade Organization accession.

Including today's decision, the European Commission said there are now ten active trade investigations into steel products, in addition to the 37 anti-dumping and anti-subsidy measures already in place.

"Seven of these investigations and 15 of the measures concern steel products originating from China," European Commission said in a press release.

Fredrik Erixon, Director of the Brussels-based European Centre for International Political Economy (ECIPE) said both China and what he called sane people in Europe understand that whatever the result of the MES issue, it should not trigger a tit-for-tat escalation in trade actions against each other.

"The steel sector on both sides has it bad enough, and overcapacity problems cannot be solved by trade policy," said Erixon.

"Trade defence measures, however, is a multiplier, it makes the overcapacity an even bigger problem and will distort markets even more, he added."

To contact the reporter: fujing@chinadaily.com.cn