EU to Strengthen Trade Defense Against China; Chinese State Media Warns of Retaliation

(CNA, Liao Wen-chi, Shanghai, May 29) The European Commission is holding a meeting today to discuss expanding import quotas and tariffs on China. In response, Chinese state media stated today that if the EU insists on promoting "overcapacity tools," "China will certainly retaliate." CCTV's new media outlet "Yuyuantantian" reported today that the EU is attempting to push for "resilience tools," or so-called "overcapacity tools." Although the EU has not explicitly stated it, the design of this new tool is highly targeted at China. The article cited data indicating that for over 20 years, European industrial competitiveness has continued to decline. Coupled with rising energy prices since 2022, this has led to a drop in output in chemical industries ranging from automobiles and clothing to defense and daily necessities, resulting in higher unemployment rates, continued decline in construction and aluminum industries, and ultimately, an expanding trade deficit. The article argued, "It is not that Chinese industries have 'attacked' Europe, but that Europe itself has fallen into a predicament." Since 2023, the European Commission has attempted to avoid real, difficult structural problems by shifting contradictions in its economic and trade policy formulation. A report by the European Council on Foreign Relations suggests that only by adopting tough confrontational measures can one take the initiative in economic and trade games, using this as an excuse to accelerate the shift toward trade protectionism. The article stated, "The EU's shift toward trade protectionism is essentially the result of the long-term decline of European industry and the collusion of vested interest groups." The article also indicated that according to sources, China could launch anti-discrimination investigations and supply chain security investigations into the EU's relevant practices. The Chinese Ministry of Commerce has clearly stated that once China's national interests and corporate rights are harmed, China will resolutely retaliate. The article said that if the EU insists on promoting these "overcapacity tools," China will take action immediately and adopt comprehensive countermeasures. "China is neither unfamiliar with nor afraid of trade friction; we will see it through to the end." According to mainland media The Paper, Chinese Foreign Ministry spokesperson Mao Ning also stated at a regular press conference today, "We hope the European side will view China-EU economic and trade relations comprehensively and objectively and abide by free trade. China is also closely monitoring relevant developments and will take necessary measures to safeguard its legitimate rights and interests." According to foreign media reports on the 28th, European Commission Executive Vice-President Stephane Sejourne, who is responsible for industrial policy, said that the EU will expand the intensity of import quotas and tariffs on China to protect specific industries such as chemicals, metals, and clean technology from unfair competition. (Editor: Chou Hui-ying)