FX.co ★ Beijing warns of retaliatory measures as EU advances new trade curbs

China has vowed to take harsh retaliatory measures if the European Union imposes new trade restrictions on Chinese corporations. The stark ultimatum came ahead of scheduled bilateral consultations, significantly raising tensions between the two largest economic partners.

On Saturday, China’s Ministry of Commerce urged Brussels to abide by WTO standards, abandon protectionism, and sit down for talks to create a new working mechanism for trade and investment. The ministry diplomatically stressed that it expects the European side to take steps to meet it halfway and to be willing to resolve disputes through dialogue.

However, the appeals for free competition were followed by a direct threat. A ministry spokesman warned that if the EU continues to implement measures that Beijing deems discriminatory, China will promptly deploy countermeasures to protect its market interests.

The current escalation comes against the backdrop of a sharp tightening of Brussels’ economic policy. The European Commission is pushing protectionist measures, citing non-transparent industrial subsidies from Beijing, restrictions on European companies’ access to China’s domestic market, and growing risks to the region’s economic security.