Stories
China Warns EU of ‘Resolute Response’ Over US-Style Trade Tool Against Beijing
- •China threatens a ‘resolute response’ if the EU implements restrictions targeting Chinese companies or products, calling the proposed measure ‘protectionist and unilateralist’.
- •The EU is considering a new trade tool, potentially modeled on the US Section 301 mechanism, to address perceived unfair trade practices by China.
- •Germany and France are reportedly collaborating on a joint paper urging the European Commission to accelerate the development of this US Section 301-like instrument.
- •China’s Commerce Ministry warns that such a move could disrupt China-EU trade and undermine mutual trust, while Beijing considers countermeasures like anti-discrimination investigations and security probes.
- •The EU is adopting a tougher stance on trade with China, pushing for a reduction in the trade imbalance and addressing concerns about Chinese industrial overcapacity and the impact of imports on European manufacturers.
Key Questions Answered
Some EU member states, led by Germany and France, are working on a joint document calling for a tool modeled on the US Section 301 mechanism. This proposed instrument would grant the European Commission greater power to investigate and respond to unfair trade practices by China.
China’s Commerce Ministry condemned the reported proposal as a unilateral and protectionist measure that could disrupt bilateral trade and harm mutual trust. Beijing warned that it would take a resolute response and potential countermeasures using its broader policy toolbox if the EU moves ahead.
The European Commission imposed anti-dumping duties ranging from 40.5 percent to 67.1 percent on imports of pea protein from China following an investigation into injury to European producers. Additionally, the EU rolled out measures to protect its steel industry and limit small e-commerce parcels to tackle its massive trade imbalance.
