BEIJING — China’s Ministry of Commerce warned on Tuesday that it will take decisive action to protect its industries if the European Union proceeds with proposed restrictions on Chinese firms and goods. The ministry described the EU’s draft tool as a “typical protectionist and unilateralist measure” that could destabilize China‑EU trade relations.
EU Plans Prompt Chinese Counter‑measures
The Chinese statement referred to a reported joint document prepared by several EU member states. The document calls for a new mechanism to address what the EU calls “unfair trade” and to enable more forceful steps against China. According to the ministry, such a tool would undermine mutual trust and interfere with ongoing consultations between the two sides.
In response, China said it could activate a “strong policy toolbox.” The toolbox would include anti‑discrimination investigations, security reviews of industrial and supply‑chain links, and examinations of foreign subsidies that may affect Chinese companies. The details were reported by the state‑run Global Times, which cited an unnamed Chinese observer.
European Push Mirrors U.S. Section 301
The Global Times linked the Chinese warning to comments from Noah Barkin, senior adviser on Europe‑China ties at the Rhodium Group. Barkin said Germany and France were finalising a joint paper urging the European Commission to fast‑track a tool that mirrors the United States’ Section 301 unfair‑trade‑practices provision. The aim, according to Barkin, is to deter China’s presence in the EU market.
While the EU has not yet released the final text of the proposed instrument, the draft suggests a more aggressive stance toward Chinese imports and investments. European officials argue that the measure is needed to address perceived market distortions and protect European industries.
China’s Stance on Trade Stability
China’s commerce ministry emphasized that any escalation would “seriously undermine mutual trust” and could jeopardise the broader consultation process between Beijing and Brussels. The ministry’s statement underscored the importance of dialogue and warned that unilateral actions would be counterproductive.
Chinese officials have repeatedly called for a rules‑based, non‑discriminatory trading system that respects the sovereignty of all parties. They argue that protectionist measures threaten the stability of global supply chains and could lead to a spiral of retaliatory actions.
Implications for Global Markets
Analysts note that a trade dispute between the world’s two largest economies could have ripple effects across global markets. Companies with exposure to both regions may face heightened regulatory scrutiny, and investors could see increased volatility in sectors such as technology, automotive, and industrial equipment.
For now, both sides appear to be positioning themselves for a protracted negotiation. The EU’s push for a new trade‑policy tool and China’s promise of a robust response suggest that the issue will remain a focal point of trans‑Atlantic economic dialogue in the coming months.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
