China's commerce minister set to meet EU trade chief in Brussels on Sunday

Chinese state media accuses EU of preparing trade restrictions while calling for dialogue

Electric vehicles, rare earths and steel tariffs among unresolved disputes

Chinese MG vehicles wait at a dock at Lianyungang Port in Jiangsu Province, China, on June 17, before being loaded onto an export vessel. [AFP]
Chinese MG vehicles wait at a dock at Lianyungang Port in Jiangsu Province, China, on June 17, before being loaded onto an export vessel. [AFP]

China's state media issued a sharp warning to the EU on Friday, days before a high-level bilateral trade meeting, as tensions over electric vehicles, rare earths and steel tariffs continued to simmer. The move signals Beijing is turning up pressure even before negotiations begin.

The state-run Global Times reported Friday that China and the EU had held intensive consultations on economic and trade issues this week and had been preparing for the inaugural meeting of a China-EU trade and investment negotiation mechanism.

The paper alleged that the EU "said it wanted to engage in dialogue with China on the one hand, but on the other lacked the sincerity to resolve problems and was even simultaneously preparing more trade restrictive measures." It warned that such behavior "could cast a shadow over the prospects for the first meeting of the China-EU trade and investment negotiation mechanism."

The Global Times further claimed that China had "consistently worked toward negotiations and dialogue with the EU" but was "well prepared to take resolute and necessary countermeasures at any time." Against that backdrop, it said, "the state of China-EU economic and trade relations appears to be growing more complicated, and trade friction between the two sides may deepen."

The paper cited several specific grievances to support its claim that the EU had not shown sufficient goodwill. It said no meaningful progress was made during the consultations on Chinese electric vehicle makers' price commitments, and that the EU had demanded China address concerns over rare earth imports while refusing to ease its own import restrictions on Chinese goods.

The Global Times also took issue with the EU's formal launch of nine investigations into Chinese companies under its Foreign Subsidies Regulation, which Beijing views as a de facto new trade barrier. It further alleged that the EU had not responded constructively to China's demands regarding steel tariffs.

The report came ahead of a visit to Brussels by Chinese Commerce Minister Wang Wentao, who is scheduled to meet EU Trade and Economic Security Commissioner Maros Sefcovic on Sunday in the Belgian capital to discuss trade imbalances.

China has been sending a stream of messages targeting the EU through state media and diplomatic channels in the run-up to the talks, a pattern analysts see as a deliberate effort to shape public opinion and maximize pressure before sitting down at the negotiating table.

Cai Run, China's ambassador to the EU, also struck a dual tone at an event in Brussels on June 24, stressing the need for China-EU cooperation while warning that China would respond in kind to whatever measures the EU chose to take.

The trade dispute between the EU and China has spread across multiple fronts, encompassing electric vehicle subsidies, rare earth supply chains, steel tariffs and foreign subsidy probes. Whether the upcoming high-level talks will ease tensions or mark a turning point toward further retaliation remains to be seen.


kwater@heraldcorp.com