China Threatens Countermeasures Over Potential EU Trade Restrictions on Chinese Firms

A Chinese flag flutters above a customs building at the Yantian port terminal in Shenzhen, Guangdong, on October 30, 2025.

Tingshu Wang | Reuters

BEIJING — Ahead of upcoming high‑level talks in Beijing, China’s commerce ministry issued a stern warning to the European Union.

The ministry said it would “respond firmly” if the EU imposes restrictions on Chinese businesses or products, according to a CNBC translation of a Mandarin statement released late Tuesday.

It added that such measures, taken while negotiations are underway, would “seriously undermine mutual trust” and “disrupt” the talks.

China and the EU have been holding trade discussions this summer as Europe seeks to cut its record trade deficit with China by October. EU Trade Commissioner Maroš Šefčovič told Euronews this week that Beijing must deliver “concrete results” by October or risk facing “harsher measures.” He is slated to visit Beijing next week.

Earlier this week, Noah Barkin of the Rhodium Group noted that Europe is examining ways to exclude China from the bloc.

Citing European officials, Barkin said Germany and France are drafting a joint paper urging the European Commission to accelerate development of a mechanism that one official described as enabling Brussels to “cut China off from the European market within 24 hours.”

Barkin suggested the approach could mirror the U.S. Section 301 tariff regime. China’s commerce ministry statement said it was reacting to Europe’s consideration of “301‑style” tools.

Although the Association of Southeast Asian Nations overtook the EU in 2020 as China’s largest goods‑trading partner, the EU’s trade deficit with China remains the world’s biggest, recently surpassing that of the United States, according to China Customs data accessed via Wind Information.

When services are included, the EU said it was China’s top trading partner, with combined trade of 880 billion euros, or nearly $1 trillion, last year.

Source link