China warns EU against new trade tool targeting alleged Chinese overcapacity
( May 21, 2026, 09:35 GMT | Official Statement) -- MLex Summary: China’s Ministry of Commerce pushed back against reports that the European Commission is preparing a new trade instrument to address alleged Chinese “overcapacity,” saying Thursday that the EU should respect market principles and avoid double standards. Ministry spokesperson He Yadong said at a regular press briefing that labeling China’s trade surplus as “overcapacity” ignored the fact that EU exports such as automobiles, pharmaceuticals, wine and cosmetics could face similar accusations. He said any new EU tool targeting Chinese companies or products under the guise of “overcapacity” would amount to an attempt to shield Europe’s struggling industries and suppress external competition. He warned that such measures would damage China-EU trade ties and disrupt global supply chains, adding that China would “firmly counter” any discriminatory restrictions against Chinese businesses or products. Excerpt of the transcript follows in Chinese)....
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