The European Union will from this week raise tariffs on Chinese exports of high-end glossy paper used for magazines and catalogues, opening another chapter in efforts to stem a growing tide of goods from the Asian nation.

The case marks the first time the EU has penalised China for using what it says are illegal state subsidies to boost its industries. Until now the bloc has relied on the more widely used penalties for dumping, in which a company exports its goods below cost.

The decision to target Beijing’s subsidies reflects a worry among European businesses and policymakers that China’s exports – once confined to industries such as shoes and bicycles – are rapidly climbing the value chain to threaten the continent’s high-end manufacturers.