China vows retaliation if Europe adopts plan to defend its local industry
The communist regime described the EU's push to regain its competitive edge and reverse its industrial decline as "systemic discrimination."
Metallurgical industry in Germany. File image
(AFP) China on Monday criticized a European Union plan to safeguard the bloc's industry against strong competition from the Asian giant, and vowed to retaliate if the initiative is adopted.
The EU in March presented its "Made in Europe" rules for companies seeking access to public funds in strategic sectors such as cars, green technology and steel, forcing firms to incorporate a minimum of European components.
The proposal is an integral part of an EU effort to regain its competitive edge, reduce its industrial decline and prevent job losses.
China's Commerce Ministry said Monday it had sent comments to the European Commission to express "serious concerns" about what it called "systemic discrimination."
"If the EU (...) moves forward with this legislation, and thus harms the interests of Chinese enterprises, China will have no choice but to retaliate to firmly safeguard the legitimate rights and interests of its enterprises," the ministry said in a statement.
Several European companies have expressed concern about unequal competition with their heavily subsidized Chinese rivals.
The European proposal targets Chinese battery and electric vehicle manufacturers by requiring foreign firms to partner with European companies and to transfer technology when setting up shop in the bloc.
The Chinese Chamber of Commerce in the EU warned this month that the plan marks a shift toward protectionism that will affect trade cooperation between Europe and China.
LATEST
