China Warns EU Against Imposing Restrictions on Its Companies

China issued a warning on Wednesday that it would retaliate against any "restrictions" the European Union places on its companies, while calling for dialogue to resolve trade disagreements, according to a report by Agence France-Presse.

Tensions between the EU and Beijing have intensified over economic issues in recent months.

Europeans attribute their growing massive trade deficit with the Asian giant—which now exceeds one billion euros daily in goods exchange, based on Eurostat data—to unfair competition practiced by Beijing.

The Chinese government denies these accusations. However, the Organisation for Economic Co-operation and Development confirmed in a study published in June that China provides substantial support to its industrial sector.

During last week's summit, EU member state leaders requested the European Commission to "complete" the EU's trade defense arsenal, while emphasizing the importance of maintaining a "constructive dialogue" with China.

Chinese Ambassador to the EU, Kai Rong, stressed the importance of preserving dialogue just days before Chinese Trade Minister Wang Wentao's visit to Brussels on Monday.

At an event held in the Belgian capital, Kai Rong affirmed that the EU and China are "partners, not adversaries, and certainly not enemies."

He stated, "We oppose using economic and trade issues for political purposes," warning against imposing "any restrictions under the guise of risk mitigation or reducing dependence" on China.

Kai Rong added, "If the European Union insists on imposing such measures, China will be forced to take countermeasures to defend its legitimate interests," but emphasized that such confrontation can be avoided.

He pointed out that both parties "are fully capable of resolving economic and trade frictions and disputes through dialogue."