EU urged to treat Chinese firms fairly

As Brussels reportedly weighs extending a trade understanding with China regarding hybrid vehicles to other sectors, Beijing has reaffirmed its willingness to resolve differences through dialogue, while warning that discriminatory curbs on Chinese goods would draw a firm response.

Officials and experts said erecting new trade barriers would do little to bolster Europe's industrial competitiveness and could instead fuel inflation across the EU and disrupt global supply chains.

The Ministry of Commerce warned on Thursday that artificial restrictions on normal trade could violate World Trade Organization rules, and reiterated China's opposition to the abuse of trade defense instruments for protectionist purposes.

"If the EU insists on imposing discriminatory restrictions on Chinese products, China will take all necessary measures to firmly safeguard its own interests and the legitimate rights and interests of its enterprises," said Huang Ling, a spokeswoman for the ministry, at a news conference in Beijing.

Huang's remarks came after Bloomberg reported on Monday — citing people familiar with the matter — that Brussels was planning "safeguard measures" covering Chinese chemicals, furniture and machinery.

Such restrictions would reduce choice in the EU market, pushing up costs for businesses and prices for consumers and adding to inflationary pressures, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

"They would also make supply chains more fragile and less predictable," Zhou said.

"China is not the root cause of the EU's problems, but a partner in solving them," Huang said, reaffirming Beijing's willingness to address trade concerns through dialogue.

Close supply chain ties give both sides a strong stake in cooperation, even as competition and trade frictions persist, said Luo Zhiheng, chief economist at Yuekai Securities, highlighting complementary strengths in semiconductor manufacturing equipment, aviation and pharmaceuticals.

Huang pointed to progress and agreements reached at the second meeting of the China-EU trade and investment consultation mechanism as evidence of both sides' "willingness, ability and wisdom to resolve trade and economic differences through dialogue and consultation".

To build on that progress, Dai Mingfeng, a researcher at the Chinese Academy of International Trade and Economic Cooperation, called for restraint in using trade defense tools and better alignment of rules.

"Lowering market access barriers and making cross-border investment easier would create more opportunities for cooperation," Dai said.

Sino-US trade ties

Also on Thursday, China condemned Washington's decision to blacklist three Chinese biotech firms — including BGI Genomics — vowing to take necessary measures to firmly safeguard its interests, the Ministry of Commerce said in a statement.

The US Department of Homeland Security announced in a notice on Wednesday that the companies were being added to the entity list under the so-called "Uygur Forced Labor Prevention Act".

The move follows Washington's blacklisting of more than 40 Chinese entities in late July, which prompted Chinese countermeasures against US entities in August.

"The US should immediately stop political maneuvering, smear campaigns and its unwarranted suppression of Chinese enterprises," a ministry spokesperson said, calling the measures groundless and seriously damaging to bilateral economic and trade ties.