China Threatens Retaliation Over Proposed EU Trade Restrictions

China has warned the European Union of potential countermeasures if Brussels adopts a proposed trade defense mechanism designed to limit foreign market access. The statement by Chinese Ambassador Cai Run came as the European Commission prepares to unveil an instrument intended to shield European industries from market disruptions.

European Trade Commissioner Maroš Šefčovič informed members of the European Parliament on Wednesday that the Commission will present the proposal by the end of the year. The mechanism is intended to allow rapid interventions, such as export restrictions, against countries whose economic actions cause severe damage to the European market. Addressing the proposed restrictions, Ambassador Cai stated: If the EU side insists on adopting restrictive and discriminatory measures against China, China will have to take countermeasures to firmly safeguard its interests.

France and Germany spearheaded the initiative in early October as trade imbalance figures mounted across all European Union member states. Chinese customs data indicates that Chinese exports to the bloc grew by 25 percent over the past year, contributing to an EU trade deficit with China of approximately one billion euros per day. European officials face growing industrial pressure as Chinese producers seek outlets for surplus production within the market of 450 million consumers.

In addition to the emergency instrument, European Union leaders have instructed the Commission to examine tariffs and quotas targeting imports in the chemical and machinery sectors. Previous negotiations that began in June led to an agreement on October 9 restricting imports of Chinese hybrid vehicles. Technical talks between officials have continued, with a formal meeting between Šefčovič and Chinese Commerce Minister Wang Wentao scheduled for March 2027.

The current dispute follows earlier friction over the proposed Industrial Accelerator Act, which seeks to restrict foreign access to European public procurement and tighten conditions on investments. Chinese officials had previously issued warnings regarding that legislation, accusing Brussels of politicizing economic issues. Technical negotiations between European and Chinese economic delegations are set to continue ahead of the ministerial summit in 2027.

Written by Christiane Hofreiter christiane.hofreiter@alpineweekly.com