EU launches tougher trade policy against China: Beijing vows swift retaliation

Beijing vows retaliation as Brussels launches tougher trade policy against China

The European Union has formally initiated a stricter trade policy targeting China, prompting immediate threats of countermeasures from Beijing. Officials in Brussels confirmed the move on Friday, framing it as a response to what they describe as "unfair competition" from Chinese imports, particularly in green technology and electric vehicles. China’s Ministry of Commerce condemned the decision, warning it would "take all necessary steps to defend its legitimate interests" .

The escalation follows weeks of internal EU debates over how to curb a surge in Chinese exports, which European leaders argue benefit from state subsidies. Specific measures under discussion include higher tariffs on Chinese electric vehicles and stricter scrutiny of critical raw material supply chains, where Beijing holds near-monopoly control . China has previously retaliated against trade restrictions with targeted tariffs on European agricultural products and industrial goods, raising concerns about a broader economic decoupling.

Meanwhile, U.S. Defense Secretary Peter Hegseth struck a more conciliatory tone, declaring in Singapore that "U.S.-China relations are in a better place than they have been in years." Speaking at the Shangri-La Dialogue, Hegseth emphasized diplomatic engagement but reiterated calls for NATO and Asian allies to increase defense spending to counter China’s military expansion. His remarks contrasted with the EU’s hardening stance, underscoring divergent Western approaches to Beijing .

China’s absence from high-level participation at the Shangri-La Dialogue drew criticism from German Defense Minister Boris Pistorius, who called it a "missed opportunity" for dialogue. While mid-level Chinese officials attended the forum, Pistorius noted that "meaningful discussions require engagement at the highest levels" . The snub follows Beijing’s decision to skip last year’s dialogue amid rising tensions over Taiwan and the South China Sea.

Analysts warn the EU’s trade crackdown could accelerate China’s push to set global standards in technology, where it already leads in areas like 5G, electric vehicle batteries, and rare earth processing. A column in *Yeni Şafak* argued that Beijing is now the "rule-setter" in digital and green industries, reshaping global supply chains and defense procurement . The EU’s move may also test China’s willingness to engage in multilateral forums, as its economic leverage grows alongside its military assertiveness.

With both sides digging in, the coming weeks will likely see tit-for-tat measures, though neither bloc has signaled a desire for full-scale economic confrontation. The U.S., meanwhile, appears to be pursuing a dual strategy: maintaining open channels with Beijing while rallying allies to contain its influence. Hegseth’s comments suggest Washington views the current thaw as fragile, dependent on China’s behavior in the Indo-Pacific and its response to Western trade policies.