China's Ministry of Commerce (MOFCOM) declared on Thursday that it will take all necessary measures to counter what it calls unfair trade restrictions under the European Union's Carbon Border Adjustment Mechanism (CBAM), set to officially take effect today. The announcement comes as the EU released updated implementation rules expanding the scope of covered products and setting carbon emission intensity baselines.
MOFCOM criticized the EU for allegedly disregarding China's progress in green development by setting disproportionately high default carbon values for Chinese exports. A ministry spokesperson stated these measures fail to account for China's current industrial realities and future decarbonization plans, calling them 'discriminatory and scientifically unfounded.'
The dispute centers on conflicting interpretations of international trade and climate governance. China argues the CBAM violates WTO principles and the UN climate convention's 'common but differentiated responsibilities' framework, while the EU maintains it prevents carbon leakage. Analysts warn this clash could impact €50 billion in annual cross-border trade in steel, aluminum, and cement.
Despite tensions, MOFCOM emphasized China's willingness to collaborate on climate challenges, urging the EU to 'abandon protectionist approaches.' The ministry reaffirmed its commitment to protecting Chinese enterprises' interests and global supply chain stability through multilateral dialogue.
