China to EU: Restrict Our Firms, Get Ready for a Response

China to EU: Restrict Our Firms, Get Ready for a Response

Beijing warns Brussels of firm retaliation as Europe weighs a plan to shut Chinese companies out of its market, while Ford's CEO says Europe has already lost the car race to China.

· 2 min read ·
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China has warned the European Union that it will "respond firmly" if the bloc places restrictions on Chinese businesses or products, setting up a potential trade clash between two of the world's largest economies [253327]. The warning came as European officials weighed a new market shutdown plan aimed at Chinese companies [252924].

The threat was issued through China's Commerce Ministry and reported by CNBC [253327]. It marks a sharp escalation in rhetoric as Beijing and Brussels prepare for their next round of trade talks [252924].

The tension comes just over a week before those talks begin. On Monday, Chinese Commerce Minister Wang Wentao held a video call with German Economy Minister Katherina Reiche, where the two officials "exchanged opinions" on China-Germany and China-EU economic and trade relations, according to a brief statement from the Chinese side [252924].

That call followed reports that Germany and France are pushing for a new tool that would allow the European Union to quickly shut China out of the European market [252924].

The standoff has drawn attention far beyond Europe. Ford Chief Executive Officer Jim Farley warned that Europe has already lost its chance to compete with Chinese automakers, and said the United States can still act — but time is running out [253341]. Farley's warning came after a high-profile meeting last week between Chinese President Xi Jinping and U.S. President Donald Trump [253341].

The Xi-Trump summit produced only limited results. The two sides agreed to a small extension of their trade truce, and China promised to send two pandas. No major new agreements were announced [250946]. Both leaders signaled a shared goal of moving past the trade war that erupted in spring 2025 and restoring what they called "strategic stability" [249881].

Xi later said the new trade arrangement between China and the United States is good news for the world economy, though he did not give details about the agreement [249126].

Sources

China, Germany hold trade talks as EU weighs market shutdown plan #252924Ford CEO: Too late for Europe to stop Chinese cars #253341China threatens EU: Restrict our firms, expect a response #253327Xi: New China-U.S. Trade Deal Is Good News for the Global Economy #249126Trump Rolls Out Red Carpet for Xi — But No Trade Breakthrough #249881Trump and Xi Meet Again, but Only Pandas and a Small Trade Deal Come Out #250946

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