China Threatens Retaliation over EU Trade Plans

China has warned the European Union against imposing new trade restrictions, threatening retaliatory measures to protect its interests. The warning came in response to a debate in the European Commission on tightening trade policy towards Beijing.

The Chinese ministry of commerce called on the EU to respect World Trade Organization (WTO) rules, promote free trade and reject protectionism. "Should the EU insist on unilaterally introducing new trade instruments and imposing discriminatory restrictions, China will resolutely take countermeasures", the ministry said.

The European Commission on Friday described trade and investment relations with China as "not sustainable" and announced tougher action to protect European industry from rising imports from Asia. Measures under consideration include new trade mechanisms and restrictions on Chinese firms' access to the European market in certain sectors.

Brussels has long warned of trade imbalances and overcapacity in China. Beijing rejects these criticisms, arguing that the EU is selectively using trade data to justify restrictive measures.

(reuters, lud)