China has warned the European Union that it would respond with a “determined reaction” if Brussels imposes new trade restrictions aimed at protecting European industries. The warning follows reports that Germany and France are pressing for a new EU instrument to address what they regard as unfair trade practices by China.
China’s Ministry of Commerce described the proposed measure as a “typically protectionist and unilateral measure” that would disrupt the stability of trade between China and the EU. The ministry said its warning was prompted by a media report concerning efforts by EU member states to encourage the European Commission to accelerate work on a new trade instrument.
According to the report cited by the ministry, EU member states are preparing a joint document urging the European Commission to develop an instrument modelled on Section 301 of US trade law. Section 301 allows the US government to take action against trade practices determined to be “unjustified, unreasonable or discriminatory”.
The Chinese state newspaper Global Times cited a blog article by Noah Barkin, an analyst specialising in EU-China relations, as the source of the report. In an article published on Sunday, Barkin, citing EU officials, said Germany and France were preparing a joint paper calling on the European Commission to speed up the development of an instrument that would give Brussels additional powers to exclude Chinese companies from the EU market.
The reports have not established that the proposed mechanism has been formally adopted by the EU. The Chinese Commerce Ministry’s statement referred to an unspecified media report, while the account of the German and French initiative was attributed to EU officials cited by Barkin.
Beijing has nevertheless signalled that it could take retaliatory measures if the EU proceeds with what it regards as protectionist action. Global Times quoted an unnamed “Chinese observer” as saying that China would respond with a “strong policy toolbox” if the EU advanced such measures.
Possible responses mentioned in the report include investigations into alleged discrimination, supply-chain security and the influence of foreign subsidies. The Chinese warning did not specify which particular European industries, companies or products could face such measures.
The Ministry of Commerce also warned that the proposed EU approach could damage trust between the two sides and disrupt ongoing discussions. China and the EU have been conducting trade and investment consultations since June.
The dispute comes as European governments consider additional instruments to address trade practices involving China, while Beijing argues that unilateral restrictions would interfere with established commercial relations. Germany and France are reported to be seeking faster action at EU level, although the precise content and status of their proposed joint document remain unclear.
China’s warning places the issue within the continuing negotiations between Brussels and Beijing. The Ministry of Commerce said further protectionist measures could affect both trade stability and confidence in the relationship, while signalling that China would consider countermeasures to protect its industries if restrictions were introduced.
