China threatens retaliation as EU mulls trade “kill-switch”
The tool would let Brussels impose quotas or tariffs faster as Chinese imports rise 25% and the EU trade deficit hits €1 billion a day.
- On Thursday, China's ambassador to the European Union, Cai Run, threatened retaliation if the European Union adopts unilateral measures against Chinese interests, amid rising tensions over potential trade restrictions targeting Beijing's exports.
- As the European Union faces a record-high trade deficit with China of €1 billion daily, Brussels seeks to protect its market as low-cost Chinese imports surged 25% over the past year. European Union leaders tasked the European Commission with developing an instrument to address this crisis.
- Trade Commissioner Maroa told MEPs on Wednesday that the proposed tool would allow the European Union "to react much faster, even by limiting the exports into the European Union." It would target countries harming European interests and rely on the European Union's 450 million consumers.
- Cai opposed "politicising economic and trade issues" and overstretching security concepts, stating, "China will have to take countermeasures to firmly safeguard its interests." His warning underscores Beijing's resolve to counter any restrictive European measures.
- A new meeting between Trade Commissioner Maroa and Commerce Minister Wang Wentao is scheduled for March 2027, continuing technical talks between Brussels and Beijing aimed at rebalancing trade relations despite the escalating tensions.
16 Articles
16 Articles
Beijing and Brussels exchanged threats and continued to prepare for a possible economic confrontation, despite a recent agreement to reduce the supply of Chinese hybrid cars to European countries, Beijing and Brussels failed to overcome differences over bilateral relations, threatening a fragile trade truce, and despite a deal a few weeks ago, the parties were actively preparing for a possible trade war, SCMP wrote. The Chinese authorities warne…
Chinese reaction occurs after the EU has announced a measure to control imports and defend itself against countries that treat the EU unfairly or that harm European interests.
The Chinese Ministry of Trade has expressed concern about the new European Union procedures for low-value imports, which include a Euro2 charge on shipments as of 1 November this year, following the imposition of a Euro3 fee last July.
The EU is DEVELOPING a "kill-switch" mechanism to protect against cheap Chinese imports due to a record trade deficit. China opposes and threatens countermeasures if the EU takes unilateral steps.
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