China has issued a strong warning that the European Union's (EU) push for new trade measures targeting Beijing could backfire. This comes after French President Emmanuel Macron and German Chancellor Friedrich Merz urged EU Commission President Ursula von der Leyen on October 5 to establish new tools for swiftly addressing trade distortions.
In a statement released on the evening of October 6, the Chinese Ministry of Commerce emphasized that "interdependence is not a risk, and the convergence of interests is not a threat." The ministry added that "protectionism cannot enhance competitiveness, and decoupling and supply chain disruptions are detrimental to all parties involved." It urged France and Germany, as major global economies, to uphold openness, cooperation, and free trade while adhering to World Trade Organization (WTO) regulations. The ministry cautioned against encouraging the EU to frequently resort to protectionist measures, stating, "Do not politicize or securitize economic and trade issues. If you take the wrong path in the wrong way, it will ultimately backfire on you."
Macron and Merz's letter did not specify any countries but highlighted market distortions reminiscent of China, such as dumping, massive subsidies, and currency value manipulation. They called for robust measures that could immediately block access to the EU single market for offending countries if necessary. German officials described these measures as comparable to the United States' Section 301.
China had previously warned at the end of last month that it would respond decisively if the EU implemented discriminatory restrictions targeting Chinese companies or products. At that time, China mentioned potential responses, including anti-discrimination investigations, industrial and supply chain security reviews, and assessments of the impact of foreign subsidies. Additionally, China could expand anti-dumping and countervailing investigations on EU products, strengthen export controls on critical minerals like rare earths, and tighten market access regulations for European companies.
Despite the pressure, China is also pursuing dialogue. On the evening of October 6, the Ministry of Commerce announced that Vice Minister Ling Ji held a video conference with the Director-General of the EU Commission's Trade and Economic Security Department to prepare for the second round of China-EU trade and investment negotiations. This indicates that China is adopting a dual strategy of pressure and dialogue.
* This article has been translated by AI.
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