Tensions over trade policy between China and the European Union are escalating as EU member states push for tougher instruments against what they see as unfair competition. China says it will respond resolutely if the bloc proceeds with restrictions targeting Chinese companies or products.
Highlights
- China's commerce ministry formally protests an EU member states' proposal for a new tool to enable stronger trade measures against China.
- Beijing warns the EU proposal is protectionist and unilateralist, threatening to disrupt China-EU trade stability if adopted.
- China signals readiness to defend domestic industries in response to potential new EU restrictions targeting Chinese goods or companies.
EU proposal draws formal protest
As reported by Reuters, China's commerce ministry says the warning relates to a joint document by EU member states advocating a new tool to address unfair trade and enable stronger measures against China.The ministry says the proposed tool is a typical protectionist and unilateralist measure. It adds that such a move would disrupt the stability of trade between China and the EU.
Broader implications for China-EU trade
The statement signals that Beijing is preparing to defend domestic industries if Brussels adopts new restrictions affecting Chinese goods or companies. The exchange adds to existing strain in economic ties as both sides scrutinize market access, industrial policy and competitive practices.The ministry issues its comments late on Tuesday, underscoring the sensitivity of the issue for bilateral trade flows and for companies exposed to the China-EU commercial relationship.
Our earlier article on the EU’s proposed “Made in Europe” rules explained that UK vehicle production rose in August, but the industry warned the new provisions could threaten long-term prospects for British auto manufacturing. It also noted that while the EU remained the UK’s largest export market, shipments to the bloc fell and trade groups argued that tighter EU-origin rules could disrupt an already deeply integrated supply chain.
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