China’s ambassador to the EU, Cai Run, warned on Thursday that Beijing would retaliate if the bloc adopts unilateral measures targeting Chinese interests. The statement came as the European Commission develops a new trade defence instrument — dubbed a “kill-switch” — that could restrict Chinese access to the EU market in response to serious market disruption.
“China opposes politicising economic and trade issues, overstretching the concept of security, and resorting to unilateral or maximum pressure,” Cai said. “If the EU side insists on adopting restrictive and discriminatory measures against China, China will have to take countermeasures to firmly safeguard its interests.”
The move reflects mounting urgency in Brussels, where the EU faces a record trade deficit with China approaching €1 billion per day. Chinese imports have surged 25% over the past year, according to Chinese customs data, placing intense pressure on European producers.
Franco-German Push for Stronger Instruments
Last October, EU leaders tasked the Commission with creating a rapid-response tool against countries whose political or economic actions seriously damage the EU market. Trade Commissioner Maroš Šefčovič told MEPs on Wednesday that the instrument should be presented by year-end, enabling the EU “to react much faster, even by limiting the exports into the European Union.” He said it would target “countries which are treating us unfairly or which are harming European interests.”
While framed as country-agnostic, the tool would directly affect Chinese interests, which depend heavily on the EU’s 450 million consumers to absorb excess production capacity. France and Germany championed the instrument in early October, as every EU member state now runs a trade deficit with Beijing, with Chinese imports threatening entire industrial sectors.
The Franco-German initiative came amid ongoing negotiations launched in June to rebalance trade relations, and just days before the Commission reached an agreement on 9 October to curb Chinese hybrid car imports. Since that deal, technical talks have resumed, with Brussels seeking to replicate the approach in other sectors. A meeting between Šefčovič and China’s Commerce Minister Wang Wentao is scheduled for March 2027.
Given the urgency, EU leaders have also asked the Commission to adopt measures — including quotas and tariffs — against Chinese imports in the chemicals and machinery industries, where pressure on European producers has become unsustainable. Šefčovič has repeatedly emphasised that with thousands of jobs at stake, the EU-China trade issue has become a political imperative with high public expectations.
Despite ongoing dialogue since June, the Commission has continued imposing additional duties on Chinese imports following product-by-product investigations that found evidence of unfair pricing or state subsidies.
This is not the first time Beijing has threatened countermeasures. China previously warned against the Industrial Accelerator Act — currently under discussion by EU co-legislators — which seeks to restrict access to EU public procurement and impose strict conditions on investments, implicitly targeting Beijing without naming it directly.