According to the Wall Street Journal, published on Friday,
China threatened to launch trade investigations against the European Union as European officials gathered to discuss strengthening the bloc's trade defense, escalating tensions between the two economic powers.
A social media account belonging to China's state broadcaster warned that Beijing could initiate investigations into anti-discrimination and supply chain security aimed at the EU's so-called excess capacity instrument. This is a proposed mechanism that would allow Brussels to restrict imports and impose sectoral tariffs on heavily subsidized foreign goods.
While not explicitly aimed at China, this instrument would likely primarily affect Chinese industrial exports in sectors such as electric vehicles, steel, and solar panels.
The warning coincided with intense talks among EU officials about expanding the bloc's trade arsenal.
According to a joint document seen by Dow Jones Newswires, five member states, including France, Spain, and the Netherlands, called on the European Commission to launch more investigations into potentially unfair trade practices, take a more assertive stance at the World Trade Organization, and devote more resources to its trade enforcement unit.
EU industry chief Stéphane Séjourné said earlier this week that Brussels intends to expand the use of import quotas and tariffs to protect European industries—particularly chemicals and cleantech—from competition from state-backed Chinese companies.
A Chinese state broadcaster accused Brussels of steering trade policy toward China along an increasingly confrontational path, citing the EU Industrial Accelerator Act among a number of recent measures deemed hostile.
The latest exchange is part of a wider pattern of trade disputes between China and the EU in recent years.
