China warns EU of retaliation if new trade restrictions are imposed

China’s Ministry of Commerce warned the European Union that it will take “resolute counter‑measures” if Brussels introduces new, unilateral trade restrictions aimed at curbing Chinese industrial overcapacity. The statement came as EU officials, led by Commission President Ursula von der Leyen, prepared a package of measures to address a widening trade imbalance – the EU’s goods‑trade deficit with China rose to €360 billion last year. EU policymakers argue that cheap Chinese imports in sectors such as automobiles, solar panels, clothing and chemicals threaten European manufacturers, potentially leading to plant closures and job losses.

China emphasized that dialogue remains open and that both sides are exploring a consultation mechanism on trade and investment. While the EU seeks tougher safeguards, member states such as Germany and France have signalled greater willingness to act. The dispute highlights growing economic‑security tensions between the world’s two largest economies and could shape future trade policy and industrial strategy in Europe.