FX.co ★ China prepares package of measures against European companies and goods

Beijing is ready to deploy a broad set of retaliatory measures if the European Union proceeds with restrictions on Chinese companies, Global Times reports. The trigger is Brussels’ plans to create an EU analogue of the US “Section 301” mechanism, which allows the United States to impose barriers on partners for alleged unfair competition. In response, Chinese authorities could launch counter‑investigations into subsidies, anti‑discrimination probes, and reviews of supply chain security.

China’s Ministry of Commerce called the Brussels initiative unilateral and protectionist, warning of the risk of disruptions to global trade. Beijing’s concern was heightened by a joint Germany‑France proposal urging tighter limits on Chinese goods’ access to the EU market. The ministry stressed that China will firmly defend its legitimate interests but urged European partners to resolve disputes through dialogue and strictly within WTO rules.

Tensions escalated after European Commission President Ursula von der Leyen spoke about trade imbalances with China and pledged to protect local businesses. One measure under discussion in the EU is giving priority to European suppliers in public procurement, which would shut foreign companies out of many contracts. Beijing has made clear that such barriers will not solve Europe’s economic problems and will only provoke inevitable reciprocal responses.