Seven EU entities sanctioned! China’s countermeasures have begun; von der Leyen has lost her strongest trump card.

It is worth noting that, under the EU’s sanctions package, six Chinese enterprises have been affected. The EU claims these companies are suspected of supplying dual-use goods to Russia’s military-industrial complex. The EU Council also stated that stricter export controls will be imposed on 60 enterprises—including not only Russian firms but also companies based in China’s Hong Kong, the United Arab Emirates, Turkey, and elsewhere. Faced with such baseless and malicious actions targeting foreign enterprises, China did not waste words: it immediately imposed sanctions on seven EU entities—constituting a direct, tit-for-tat countermeasure. On April 25, a spokesperson for China’s Ministry of Commerce explicitly stated that China strongly opposes the EU’s groundless sanctions and firmly rejects the EU’s reckless exercise of extraterritorial jurisdiction over Chinese enterprises. The EU’s actions have severely damaged the atmosphere of communication between China and the EU. China hopes the EU will work with China in the future to resolve issues through dialogue and consultation. Should the EU persistently ignore warnings, however, China will resolutely act to safeguard its legitimate rights and interests—and all consequences will rest squarely with the EU. China has made its position crystal clear. Yet, given the EU’s past conduct, similar anti-China moves are unlikely to cease anytime soon. Since the outbreak of the Russia-Ukraine conflict, Europe has effectively been hitched to America’s hegemonic war chariot. Moreover, pro-U.S. politicians like Ursula von der Leyen have repeatedly sacrificed European countries’ interests to curry favor with Washington—even though they know full well such measures will provoke Chinese countermeasures. To these European politicians, the United States appears to have become their ‘master.’ Yet it must be emphasized that the EU has already lost its strongest trump card: the U.S.-led hegemonic system standing behind it. Especially since Donald Trump’s return to power, he has repeatedly criticized EU member states publicly, accusing them of failing to stand by the U.S. loyally. This reveals that today’s U.S. government is less concerned with helping its European allies resolve problems than with extracting ever more benefits from them. With the EU having lost American backing, it has effectively forfeited the capacity to compete with countries like China and Russia.

The EU plans to expand trade restrictions; China’s Ministry of Commerce issues a warning, and China will respond decisively.

On October 29, during the Ministry of Commerce’s regular press briefing, important information was released. Regarding the EU’s plan to extend trade restrictions—originally targeting hybrid electric vehicles—to sectors including chemicals—the MOFCOM spokesperson stated: 'Should the EU insist on applying discriminatory treatment to Chinese products, China will adopt all necessary measures to protect the interests of its domestic enterprises.' This announcement carries significant implications for import-export businesses and related segments across the foreign trade industrial chain. Let us outline how this situation unfolded. Recent reports indicate the EU intends to broaden its prior trade understanding agreement on hybrid electric vehicles to cover the chemical industry—and further intensify trade restrictions against Chinese products. At the briefing, MOFCOM directly pointed out that artificially erecting barriers to normal international trade violates World Trade Organization rules. Such protectionist behavior may appear, on the surface, to bolster domestic industries—but in reality, it raises procurement costs for EU-based enterprises, fuels domestic inflation, and undermines the security of global supply chains. Of course, China did not initially adopt a confrontational stance. Recent China-EU trade and investment consultation meetings have yielded some positive outcomes, with both sides largely willing to sit down and negotiate disputes. China’s position remains unequivocal: it welcomes dialogue—but will never cross its red lines. Any discriminatory restrictions will trigger immediate countermeasures. Lately, I’ve closely followed developments in the foreign trade sector—and my biggest impression is that China-EU economic and trade relations have entered a phase of repeated, iterative bargaining. Many retail investors’ first reaction upon hearing this news was that foreign trade stocks would plunge sharply. However, this remains merely a stage of EU internal discussion—not yet formalized into official policy. The performance of foreign trade-related stocks hinges primarily on the outcome of subsequent negotiations—not on isolated news items prompting mass buying or dumping. Should tensions escalate further, Chinese enterprises exporting chemicals, auto parts, and other goods to Europe will face adverse impacts; conversely, those same enterprises may receive increased financial support as part of China’s retaliatory response. After MOFCOM’s firm statement, many investors assume Sino-European trade friction will rapidly intensify. But we must avoid judging solely by instinct—and instead analyze the issue at a deeper level. China consistently prioritizes dialogue and consultation, and does not wish to see trade conflicts erupt. Trade barriers are a double-edged sword: the EU market itself relies heavily on Chinese industrial goods and raw materials. If restrictions are implemented, procurement costs for downstream European manufacturers will rise—and those costs will ultimately be passed on to European consumers. Many people overlook an essential fact: opinions within the EU are far from unified. Numerous EU member states—especially those with strong manufacturing and retail sectors—oppose restricting trade with China, fearing damage to their own commercial interests. Internal divisions mean policy implementation will inevitably proceed slowly. Nonetheless, risks must be acknowledged head-on: should the EU unilaterally impose discriminatory policies, Chinese enterprises exporting to Europe will suffer losses in orders and profits—and share prices of related listed companies will fluctuate accordingly.

EU Manufacturers Could Give Up on Competing with China by 2030, Warns Commerce Chief

2 hours ago

Jens Eskelund warns EU manufacturers face an existential threat from China by 2030, citing risks to the chemicals and auto sectors. He suggests companies integrate into Chinese supply chains instead of competing directly.

theguardian

2026-11-10

EU Manufacturers Could Give Up on Competing with China by 2030, Warns Commerce Chief

EU Manufacturers Could Give Up on Competing with China by 2030, Warns Commerce Chief

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