China has warned the European Union it will take countermeasures if Brussels adopts what it calls restrictive and discriminatory measures, as the European Commission works on a powerful new instrument to protect the bloc’s market from a surge of cheap Chinese imports. Speaking on 5 November, China’s ambassador to the EU, Cai Run, said Beijing opposes politicising economic and trade issues, overstretching the concept of security, and resorting to unilateral or maximum pressure.
The tool, dubbed a “kill-switch,” would let the EU cut off access to its market for countries whose political or economic actions seriously disrupt it. EU leaders tasked the Commission with developing the instrument last October, and Trade Commissioner Maroš Šefčovič told MEPs it should be presented by the end of the year. He said it would allow the EU to react much faster, even by limiting exports into the Union, and would target countries treating Europe unfairly or harming its interests. Although presented as country-agnostic, it would directly affect Chinese exporters, who rely heavily on the EU’s 450 million consumers to absorb excess production.
The backdrop is a record EU trade deficit with China of €1 billion a day. According to Chinese customs data, Chinese exports to the EU have risen by 25% over the past year. France and Germany pushed for the instrument in early October, as every EU member state now runs a deficit with Beijing and entire industrial sectors face pressure.
The move comes alongside ongoing negotiations launched in June to rebalance trade relations. On 9 October, the Commission secured a deal to reduce Chinese imports of hybrid cars into the EU, and technical talks have since resumed, with Brussels hoping to replicate the agreement in other sectors. Šefčovič and China’s Commerce Minister Wang Wentao are due to meet again in March 2027.
Meanwhile, EU leaders have asked the Commission to adopt quotas and tariffs on Chinese chemicals and machinery imports, and Brussels continues to impose additional duties following product-by-product investigations into unfair pricing and subsidies. China has previously threatened countermeasures over the Industrial Accelerator Act, which would restrict access to public procurement and set strict conditions on investment in the EU.
With thousands of jobs at stake, Šefčovič has noted that EU-China trade has become a political issue in Europe, with high public expectations for action.
At DMX Associates, we are monitoring developments in EU-China trade relations and European trade defence policy. Stay up to date via our website and LinkedIn page.
