EU gets rebuke for trade curb proposals

The European Union's proposed "Section 301" trade instrument against China is more of a negotiation pressure tactic rather than a substantive policy shift, said experts, warning that it would backfire and has a low probability of full implementation.

Their comments came on the heels of a firm rebuke by China's Ministry of Commerce on Tuesday against reported moves by some EU member states to push the European Commission to accelerate work on an instrument modeled on Section 301 of the US Trade Act, which allows Washington to investigate and respond to what it considers unfair foreign trade practices.

The ministry denounced the proposal as unilateral protectionism that would backfire and disrupt bilateral trade and global supply chain stability.

In an online reply to the media, a ministry spokesperson stressed that such restrictive practices will contribute nothing to resolving existing economic and trade frictions. Instead, they will backfire on the EU, disrupt bilateral China-EU trade relations and undermine the stability of global industrial and supply chains.

The spokesperson emphasized that as a self-proclaimed defender of multilateralism, the EU should abide by international trade rules and set a good example.

China and the EU have been maintaining dialogue under the bilateral trade and investment consultation mechanism to address respective concerns, the spokesperson said, adding that the reported moves will severely undermine mutual trust, disrupt bilateral consultation progress and harm overall China-EU economic and trade cooperation if the EU steps up pressure on China amid ongoing bilateral dialogue.

China urges the EU to adhere to the right approach of managing differences through dialogue and consultation. The country will closely monitor the EU's follow-up policy developments. Should the EU insist on introducing discriminatory restrictions targeting Chinese enterprises or products, China will respond firmly to safeguard the legitimate rights and interests of its domestic industries, the spokesperson said.

Su Qingyi, a research fellow with the Chinese Academy of Social Sciences, said the proposed instrument reflects both Brussels' desire for negotiation leverage and its underlying intent to take a harder line on trade frictions with China.

However, Su assessed that the likelihood of actual implementation remains low, as any such move would trigger inevitable retaliation from Beijing and ultimately hurt the EU more.

He noted that the EU has limited cards to play, while China retains ample room for countermeasures, making the proposal more of a pressure tactic than a serious policy shift.

Wang Yubo contributed to this story.