Impose a so-called 'overcapacity instrument' aimed at reducing Chinese exports and we will hit back with "resolute countermeasures", Beijing has warned the EU.

China warns the EU of countermeasures if new trade restrictions are enforced, escalating tensions in a relationship worth €732 billion in bilateral trade.

Impose a so-called 'overcapacity instrument' aimed at reducing Chinese exports and we will hit back with "resolute countermeasures", Beijing has warned the EU.