China has threatened “resolute countermeasures” if the European Union moves ahead with a trade instrument that Beijing says would impose discriminatory restrictions on its companies and products – in the latest round of the EU-Sino trade war.
The EU Commission has drawn up plans for a so-called “overcapacity instrument” that would allow the bloc to restrict Chinese access to market sectors that is due to be discussed by the college of commissioners next week (29 May).
Commission officials have said that China currently accounts for 30 percent of global production but just 13 percent of consumption.
The commission, which is also anxious to reduce what it describes as the EU’s “dependence” on foreign imports of products such as fertiliser, medicines and rare minerals, is also considering whether to propose legal changes that would force European companies to buy critical components from at least three different suppliers.
However, speaking at a press briefing in Beijing on Thursday (21 May), Chinese commerce ministry spokesperson He Yadong hit back remarking that “If we label trade surpluses as ‘overcapacity,’ then should EU’s exports of automobiles, pharmaceuticals, wine and cosmetics also be labeled as ‘overcapacity’?”.
