While almost everyone in Brussels was asleep last night – except EU foreign ministers fighting about Syria– the Chinese delegation to the EU put out what can only be described as its toughest response yet to the burgeoning trade dispute between Brussels and Beijing.
The statement, which we’ve posted in its entirety here, came after China’s trade representative Zhong Shan met in Brussels yesterday with the EU’s trade chief, Karel De Gucht, in a last-ditch attempt to head off two trade cases that are among the biggest and most politically radioactive the European Commission has ever attempted: punitive tariffs against Chinese solar panel imports and an anti-dumping investigation of Chinese telecommunications equipment.
In the statement, the Chinese delegation is pretty blunt: If De Gucht moves forward with the cases, there will be retaliation – and that retaliation could lead to a full-blown trade war:
If the EU were to impose provisional anti-dumping duties on Chinese solar panels and to initiate an ex-officio case on Chinese wireless communications networks, the Chinese government would not sit on the sideline but would rather take necessary steps to defend its national interest. Despite the heightened risk of the China-EU bilateral trade dispute widening and escalating, the Chinese government would nevertheless make a best effort for hope of reaching a consensus and avoiding a trade war, but this would require restraint and cooperation on the EU’s part.