China Warns EU Ahead of High-Level Trade Talks
- China’s commerce ministry threatens a firm response to any EU restrictions on Chinese businesses.
- EU Trade Commissioner Maroš Šefčovič demands “concrete results” from China by October.
- The EU’s trade deficit with China is now the largest in the world, surpassing the U.S.
BEIJING — China’s commerce ministry issued a stern warning to the European Union ahead of anticipated high-level discussions in Beijing next week. The ministry stated that China would “respond firmly” if the EU were to impose restrictions on Chinese businesses or products.
In a statement released late Tuesday, the ministry emphasized that such actions would “seriously undermine mutual trust” and disrupt ongoing trade negotiations, as both sides engage in discussions aimed at addressing economic issues.
This summer, China and the EU entered trade talks focused on reducing Europe’s significant trade deficit with China by October. EU Trade Commissioner Maroš Šefčovič recently stated in an interview with Euronews that Beijing must deliver “concrete results” or face potentially “harsher measures.” Šefčovič is expected to visit Beijing next week to continue these discussions.
Moreover, Rhodium Group’s Noah Barkin reported that Europe is contemplating measures that could restrict Chinese access to the bloc. He cited sources indicating that Germany and France are finalizing a joint proposal urging the European Commission to accelerate the creation of a tool that could allow the EU to “cut China off from the European market within 24 hours.”
Barkin suggested that these measures might resemble the U.S. Section 301 tariff framework, to which the Chinese commerce ministry’s statement responded by highlighting its awareness of Europe’s considerations of “301”-style tools.
According to China Customs data accessed through Wind Information, while the Association of Southeast Asian Nations became China’s largest goods trading partner in 2020, the EU’s trade deficit with China is now the largest globally, having recently surpassed that of the U.S. Including services, the EU reported total trade with China reached 880 billion euros (nearly $1 trillion) last year, solidifying its position as China’s top trading partner.
News Courtesy of CNBC
