China threatens retaliation if the EU proceeds with stricter controls on imports from China.

China has threatened retaliation if the EU proceeds with stricter controls on imports from China, following concerns in Europe about overcapacity and the influx of Chinese goods that could impact the region's industries.

On May 21, 2026, at 3:14 PM, Bloomberg News reported that China warned of retaliatory measures if the EU continued to restrict imports of Chinese goods, amid escalating trade tensions between the two sides.

He Yadong, spokesman for China's Ministry of Commerce, said at a press conference in Beijing on Thursday that if a trade surplus is used as a reason to accuse a country of overcapacity, then the EU itself could also be seen as having overcapacity in goods such as cars, pharmaceuticals, wine, and cosmetics.

He also called on Brussels to return to the path of negotiations, warning that China would take decisive retaliatory measures if the EU decided to impose further discriminatory measures against China, although he did not specify details of such measures.

Bloomberg previously reported that EU officials are considering new measures to protect the bloc's economy from the influx of Chinese goods, and this issue will be discussed at the meeting on May 29.

The report states that the EU will assess what tools member states are prepared to address the problem of excess production capacity in China, and EU leaders are expected to discuss this issue again at the June summit.

Trade tensions between China and the EU come at the same time that China and the United States continue negotiations to extend their trade truce following President Donald Trump's visit to China.

Meanwhile, the EU is becoming increasingly concerned about its continuously expanding trade deficit with China, fearing it will impact key manufacturing bases and industries in Europe.

European companies operating in China have also warned that China's supply chain regulations and new measures are increasing the risks of doing business in the country.

Earlier in March, China criticized the EU's Industrial Accelerator Act, which prioritizes European companies in government procurement, arguing it was a trade barrier and undermined the stability of global supply chains.

Reference: bloomberg.com

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