China Warns EU on Trade Curbs, Urges Dialogue

China announced today it would retaliate against any restrictions imposed by the European Union on its companies, while calling for dialogue to resolve existing trade disputes. Tensions between the two sides have escalated over economic issues in recent months, with Europeans attributing their massive trade deficit with China, exceeding one billion euros daily in goods exchange, to unfair competitive practices. The Chinese government vehemently denies these accusations. However, a previous study by the Organisation for Economic Co-operation and Development (OECD) confirmed that China provides substantial support to its industrial sector. Leaders of the bloc had requested the European Commission last week to "complete" the European trade defense arsenal, while emphasizing the importance of continuing a "constructive dialogue" with China. In this context, Cai Run, head of the Chinese mission to the EU, stressed the importance of dialogue, days before Chinese Commerce Minister Wang Wentao's anticipated visit to Brussels. During an event in the Belgian capital, Cai Run affirmed that the EU and China are "partners, not rivals, and certainly not adversaries." He added: "We are against the politicization of economic and trade issues," warning against imposing "any restriction under the guise of de-risking or reducing dependence" on China. He further stated: "If the European Union insists on imposing such measures, China will be forced to take countermeasures in defense of its legitimate interests." He stressed that confrontation is avoidable, asserting that both parties are "fully capable of resolving economic and trade frictions and disagreements through dialogue."