China is disappointed the European Union (EU) has decided to launch an anti-subsidy investigation into imported Chinese coated paper, Ministry of Commerce (MOC) spokesman Yao Jian said Saturday.

"China will closely follow this issue and reserves its right to take necessary measures in accordance with WTO rules," Yao said.

He said the coated paper probe is the EU's first anti-subsidy investigation into Chinese products.

The EU launched an anti-dumping investigation on Chinese coated paper two months ago, he said.

Increased trade protectionism is a major threat to the world economy recovery, Yao said.

"To create a win-win situation, China and the EU should settle trade disputes cooperatively," he added.

MOC data shows the EU initiated seven anti-dumping investigations against China in 2009.

The EU is China's largest trade partner, with bilateral trade volume exceeding 360 billion U.S. dollars last year.