China urges the EU to stay on the right track of managing differences through dialogue. China will closely follow the EU's next moves. If the EU insists on introducing discriminatory restrictions against Chinese companies or products, China will respond resolutely to safeguard the legitimate rights and interests of Chinese industries, a Spokesperson of China's Ministry of Commerce (MOFCOM) said. Some EU member states are drafting a joint document calling on the European Commission to accelerate the development of a European version of the U.S. “Section 301” tool and take tougher measures against China. The tool mentioned in the reports is a typical protectionist and unilateral measure, which will not help solve problems, but will instead backfire on the EU itself and disrupt China-EU trade as well as the stability of global industrial and supply chains. The EU itself has also been a victim of such tools. One should not impose on others what one does not desire for oneself, the Spokesperson said.
As an important member of the WTO, the EU has consistently portrayed itself as a defender of multilateralism. If it fails to lead by example and instead takes the lead in violating WTO rules, it will seriously undermine the rules-based multilateral trading system, the MOFCOM Spokesperson said. China and the EU are currently maintaining dialogue under their trade and investment consultation mechanism and exploring ways to address each other's concerns. If the EU engages in dialogue and consultations with China while at the same time stepping up pressure against China, it will seriously undermine mutual trust, disrupt the overall consultation process and affect broader China-EU economic and trade cooperation, the Spokesperson said, as reported by the Global Times.
The South China Morning Post reports that Chinese Commerce Minister Wang Wentao held a video call with German Economy Minister Katherina Reiche amid reports that Germany and France are pushing for a new tool that would enable the EU to swiftly shut China out of the European market. The call came 10 days before Minister Wang was expected to meet with his European counterpart Maros Sefcovic in Beijing on October 8 for the second round of China-EU trade talks. Sources from the Chinese side have described discussions as “difficult”. While the German government was sharpening its tools for the talks, some German businesses have been preparing for the worst-case scenario and “stockpiling” rare earths in case the negotiation broke down and the EU’s push to rebalance trade would trigger retaliation from China.
