China’s commerce ministry has warned that it will take a “resolute response” to protect Chinese industries if the European Union proceeds with restrictions on Chinese companies or products. The statement, released late on Tuesday, 29 September, comes as some EU member states press for stronger tools to address what they regard as unfair Chinese trade practices.
The ministry described the reported EU instrument as a “typical protectionist and unilateralist measure”. It said such a tool would disrupt the stability of trade between China and the EU.
Some member states have drafted a joint document calling for a mechanism to tackle unfair trade and for more forceful measures towards China. Germany and France were finalising a separate joint paper urging the European Commission to speed up work on an instrument that would mirror the United States’ Section 301 unfair trade practices provision.
The documents point to a possible shift towards a more formal EU mechanism for addressing trade practices involving China. The brief does not say when any instrument might be formally proposed or introduced, whether the EU will proceed, or which Chinese businesses or products could face restrictions.
Beijing’s warning focused on the effect that such measures could have on the wider relationship. The commerce ministry said that talks with China would be seriously damaged if the European side held consultations while applying increasing pressure. It said that approach would undermine mutual trust and interfere with the overall consultation process.
An unnamed Chinese observer cited by Global Times said China has a “strong policy toolbox” that could include anti-discrimination probes and security investigations into industrial and supply chains. China could also examine the effects of foreign subsidies.
The statement did not set out a timetable for any Chinese action or explain how those tools would be used. It also gave no details on the scope of potential investigations. The warning nevertheless signals that Beijing sees the proposed EU approach as a potential trigger for trade countermeasures.
Trade tensions have been rising as EU member states consider ways to respond to perceived unfair Chinese trade behaviour. China has cast the emerging EU proposals as protectionist, while Germany and France are seeking faster work by the European Commission on a tool modelled on a US provision. Whether the proposal gathers wider EU support remains unclear.
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