Politics · Singapore Bureau
China warns of trade retaliation if EU pursues restrictive measures
Beijing has signalled it will deploy a range of policy tools, including anti-discrimination investigations, should the European Union proceed with trade actions against Chinese interests.
LSN Singapore ·

China has cautioned the European Union against introducing trade measures targeting Chinese commerce, pledging a forceful response if such steps are taken. Officials in Beijing indicated the country would draw on what they described as a comprehensive policy toolkit to counter any new restrictions.
Among the potential responses outlined is the use of anti-discrimination probes, which could be deployed against EU companies operating in Chinese markets. Such investigations have been used by Beijing in past trade disputes as a means of applying pressure on foreign businesses.
The warning comes amid ongoing tensions between China and the EU over trade practices, intellectual property concerns, and market access issues. The bloc has been increasingly scrutinising Chinese economic activities and considering targeted trade policies in response to what it views as unfair competitive practices.
China has consistently maintained that it opposes protectionist measures and has called for dialogue to resolve trade disputes. However, Beijing has also demonstrated a willingness to retaliate against what it perceives as discriminatory actions by Western trading partners.
The standoff underscores deepening economic friction between China and Europe, with both sides preparing contingency measures should negotiations fail to produce resolution.