Key insights
- China has warned of retaliation against potential new EU trade restrictions, escalating tensions ahead of economic dialogues. This threat of countermeasures, if the EU proceeds with 'discriminatory measures,' could disrupt global trade flows and impact multinational corporations. While dialogue is proposed, Beijing's stance suggests a potential increase in protectionism, which could negatively affect global economic stability and investor sentiment.
Investing.com-- China on Saturday warned it would take countermeasures if the European Union introduced new trade restrictions targeting Chinese companies, adding to tensions between the two major trading partners ahead of planned economic dialogues.
Responding to discussions held by the European Commission on relations with China, the Chinese commerce ministry said it hoped the EU would abide by World Trade Organization rules, uphold free trade and fair competition, and oppose protectionism and unilateral measures.
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China and the EU remain important economic and trade partners, the ministry said, noting that both sides are exploring the creation of a consultation mechanism covering trade and investment issues.
"We hope the European side will meet China halfway," a commerce ministry spokesperson said, urging both parties to manage differences through dialogue and consultation and promote stable economic ties.
However, Beijing warned it would respond if the EU pressed ahead with what it described as discriminatory measures.
"Should the European side insist on unilaterally introducing new trade instruments and adopting discriminatory restrictions, the Chinese side will resolutely take countermeasures and adopt effective measures to safeguard its own interests," the spokesperson said.
The comments come as Brussels has taken a tougher stance on trade relations with China, citing concerns over market access, industrial subsidies and economic security.
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