China warns EU of retaliation over potential trade restrictions

China's Ministry of Commerce has warned the European Union that it is prepared to take tough retaliatory measures if restrictions are imposed on Chinese companies and goods. Officials stated that such actions by Brussels could seriously undermine mutual trust and jeopardize ongoing trade negotiations aimed at reducing Europe's record trade deficit with China.

Tensions are rising ahead of EU Trade Commissioner Maroš Šefčovič's planned visit to Beijing. Experts from the Rhodium Group note that Germany and France are preparing a joint document urging the European Commission to accelerate the development of mechanisms that could potentially close off Chinese access to the European market within 24 hours, similar to American tariff structures.

While the Association of Southeast Asian Nations surpassed the EU as China's largest goods trading partner in 2020, the EU maintains a massive trade deficit with China, exceeding that of the United States. Despite this, the EU remained China's top services trading partner last year, with a turnover of approximately 880 billion euros.