China to respond with ’strong policy toolbox’ if EU steps up curbs, GT reports
China warns it will deploy a comprehensive array of countermeasures if the European Union intensifies restrictions on Chinese businesses or commodities, according to the Global Times. The newspaper reported, citing an unnamed Chinese observer, that Beijing could employ a "strong policy toolbox" akin to the U.S. Section 301 trade tool used by Washington.
Potential actions could encompass anti-discrimination investigations, industrial and supply-chain security probes, and assessments of foreign subsidies' impact, the observer told the Global Times. China's Ministry of Commerce echoed these claims on Tuesday, reaffirming its commitment to safeguard the legal rights and interests of Chinese firms should the EU impose discriminatory barriers against Chinese products.
The ministry emphasized that China and the EU are engaged in ongoing dialogue through their trade and investment consultation mechanism, and are exploring solutions to their concerns. The Global Times reported that Germany and France are reportedly finalizing a joint paper urging the European Commission to expedite the creation of an instrument granting Brussels new authority to limit Chinese access to the EU market.
European officials stated that this proposed tool could resemble the U.S. Section 301 framework, which enables the U.S. to investigate and respond to trade practices deemed unfair or detrimental to U.S. commerce. MOFCOM branded the purported EU initiative as protectionist and unilateral, warning that it could disrupt China-EU trade and global industrial and supply chains.
The ministry also argued that any China-EU resolution must adhere to WTO rules and domestic laws while striking a balance between the interests of industries on both sides. The escalating trade tensions between Brussels and Beijing come after European Commission President Ursula von der Leyen recently highlighted the trade imbalance between the EU and China and pledged to leverage available tools to rebalance the relationship.
The commission has proposed "European preference" criteria in public procurement that could curtail access for third-country firms.
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