Beijing warns of retaliation if Europe imposes curbs on Chinese businesses

China’s commerce ministry warned the European Union it will “respond firmly” if the bloc imposes restrictions on Chinese businesses or products, a statement released late Tuesday said. The warning comes as high‑level trade talks are set to begin in Beijing next week, with EU officials traveling to the Chinese capital for the first time in months.

The EU is pressing for a faster reduction of its record trade deficit with China, which now tops $1 trillion in combined goods and services. Trade talks have run through the summer, and EU Trade Commissioner Maroš Šefčovič told Euronews the Chinese side must deliver “concrete results” by October or face “harsher measures.” He is expected to meet his Chinese counterpart in Beijing next week. The Chinese ministry said that any curbs introduced while talks are ongoing would “seriously undermine mutual trust” and could “disrupt” the negotiations.

European officials are reportedly drafting a joint paper that would speed up a new tool allowing Brussels to block Chinese firms from the European market within 24 hours. The proposal, described by a source as a “301‑style” measure, mirrors the United States’ Section 301 tariff regime that was used to target Chinese imports in recent years. Noah Barkin of the Rhodium Group said Europe is considering steps that could effectively shut China out of the bloc, echoing the U.S. approach. China’s customs data shows the EU now runs the world’s largest trade deficit with China, overtaking the United States, while ASEAN has become China’s biggest goods trading partner.

If the EU moves forward with rapid‑response restrictions, the next round of talks could stall or collapse, raising the risk of a broader trade clash. Both sides have signalled that the outcome will affect supply chains, investment flows and geopolitical ties across the continent. Observers say the coming week will test whether Beijing and Brussels can find a compromise or slide into a new era of economic confrontation.