On 30/9, China's Ministry of Commerce issued an announcement regarding a document reportedly a joint draft by several EU member states. The document indicates these countries aim to promote a tool to address unfair trade practices and apply tougher measures against Beijing.
China's Ministry of Commerce labeled this proposed tool "a typical example of protectionism and unilateralism." It warned that such measures would disrupt the stability of trade between China and the EU.
"If Europe negotiates while simultaneously increasing pressure on China, it will severely erode mutual trust and hinder the overall consultation process," the Ministry of Commerce warned.
The Global Times quoted a Chinese expert who stated Beijing could retaliate with a "powerful policy toolkit" including: anti-discrimination investigations, addressing security risks to industry and supply chains, and assessing the impact of foreign subsidy measures.
The newspaper also referenced an article by Noah Barkin, a senior advisor for Europe-China relations at Rhodium Group. Barkin noted that Germany and France are finalizing a joint document this week, urging the European Commission (EC) to accelerate the development of a tool similar to the US's for unfair trade practices, aimed at deterring China in the EU market.
China and Europe are currently engaged in trade negotiations, as the EU seeks to reduce its record trade deficit with the world's second-largest economy. On Euronews this week, EU Trade Commissioner Maroš Šefčovič stated that Beijing must deliver "concrete results" before October, or face "tougher measures." He is scheduled to visit Beijing next week.
Although Southeast Asia surpassed the EU to become China's largest goods trade partner in 2000, the EU's trade deficit with Beijing remains the world's largest. Last year, this figure reached EUR 360 billion (USD 410 billion).
Including services, the EU reported China as its top trade partner, with a total trade volume of EUR 880 billion (nearly USD 1 trillion) last year.
By Ha Thu (Reuters, CNBC)
