In a significant development for global trade dynamics, the Chinese mainland has signaled its readiness to respond firmly if the European Union (EU) proceeds with discriminatory restrictions on Chinese products and companies. This warning comes amid rising tensions over trade imbalances and the concept of industrial "overcapacity."
Speaking at a regular press briefing this Thursday, He Yadong, a spokesperson for China's Ministry of Commerce, stated that China will take resolute countermeasures should the EU insist on imposing restrictive measures. The remarks were prompted by reports suggesting that the European Commission is exploring a new trade tool specifically designed to address concerns regarding China's production capacity.
The dispute centers on the EU's claims of overcapacity in certain Chinese sectors. However, the Chinese side has questioned the validity and consistency of these labels. Spokesperson He Yadong challenged the EU's logic, questioning whether the EU's own trade surpluses in sectors such as automobiles, pharmaceuticals, wine, and cosmetics should similarly be labeled as "overcapacity."
For business professionals and investors monitoring Asian and European markets, this friction underscores the volatility of current trade relations. The Chinese mainland has pointed out that several countries are currently investigating the EU's own overcapacity issues, arguing that the European Union should avoid applying double standards in its trade policies.
Rather than escalating trade barriers, China is urging the EU to return to a path of dialogue and consultation. According to the Ministry of Commerce, such an approach is essential for the healthy development of economic and trade relations between the two major global powers, ensuring mutual benefit and stability in the international market.
Reference(s):
China to take countermeasures if EU imposes discriminatory curbs
cgtn.com
