China warns of ‘resolute response’ if EU tightens trade curbs

China has threatened a "resolute response" if the European Union implements tighter restrictions on Chinese companies and products, heightening the risk of escalating trade tensions between the two economic powerhouses. According to Reuters, the warning came after multiple EU member states reportedly drafted a joint document advocating for a tool to combat unfair trade practices and enable stronger measures against China.

The Chinese Commerce Ministry denounced the suggested instrument, branding it as a "typical protectionist and unilateralist measure" that would jeopardize the stability of China-EU trade relations. The ministry cautioned that any pressure from the European side would severely damage mutual trust and disrupt ongoing consultations.

Should the EU proceed with the talks, China might retaliate with a "strong policy toolbox," potentially including anti-discrimination investigations, security probes into industrial and supply chains, and assessments of the impact of foreign subsidies, as reported by the state-run Global Times. The warning follows a recent report by Noah Barkin, a senior adviser on Europe-China ties at the Rhodium Group, who revealed that Germany and France are finalizing a joint paper urging the European Commission to expedite the development of an instrument similar to the U.S.'s Section 301 provision on unfair trade practices.

The proposed EU measure would aim to deter Chinese businesses in the European market, according to Barkin.