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Beijing warns of retaliation if Europe imposes curbs on Chinese businesses

China warned the European Union

Beijing warns of retaliation if Europe imposes curbs on Chinese businesses
CNBC Finance โ€” 29 September 2026
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Chinaโ€™s commerce ministry warned the European Union it will โ€œrespond firmlyโ€ if the bloc imposes restrictions on Chinese businesses or products, a statement released late Tuesday said. The warning comes as highโ€‘level trade talks are set to begin in Beijing next week, with EU officials traveling to the Chinese capital for the first time in months.

The EU is pressing for a faster reduction of its record trade deficit with China, which now tops $1โ€ฏtrillion in combined goods and services. Trade talks have run through the summer, and EU Trade Commissionerโ€ฏMaroลกโ€ฏล efฤoviฤ told Euronews the Chinese side must deliver โ€œconcrete resultsโ€ by October or face โ€œharsher measures.โ€ He is expected to meet his Chinese counterpart in Beijing next week. The Chinese ministry said that any curbs introduced while talks are ongoing would โ€œseriously undermine mutual trustโ€ and could โ€œdisruptโ€ the negotiations.

European officials are reportedly drafting a joint paper that would speed up a new tool allowing Brussels to block Chinese firms from the European market within 24โ€ฏhours. The proposal, described by a source as a โ€œ301โ€‘styleโ€ measure, mirrors the United Statesโ€™ Sectionโ€ฏ301 tariff regime that was used to target Chinese imports in recent years. Noahโ€ฏBarkin of the Rhodium Group said Europe is considering steps that could effectively shut China out of the bloc, echoing the U.S. approach. Chinaโ€™s customs data shows the EU now runs the worldโ€™s largest trade deficit with China, overtaking the United States, while ASEAN has become Chinaโ€™s biggest goods trading partner.

If the EU moves forward with rapidโ€‘response restrictions, the next round of talks could stall or collapse, raising the risk of a broader trade clash. Both sides have signalled that the outcome will affect supply chains, investment flows and geopolitical ties across the continent. Observers say the coming week will test whether Beijing and Brussels can find a compromise or slide into a new era of economic confrontation.

Read Full Story at CNBC Finance โ†’
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