China warns France and Germany against protectionist trade policies

Wednesday 07 - 16:51

By: Azzat Manal

China warns France and Germany against protectionist trade policies

China has urged France and Germany to maintain open trade and respect World Trade Organization rules, warning that a stronger reliance on protectionist measures could ultimately undermine economic competitiveness and disrupt international supply chains.

A spokesperson for China’s Ministry of Commerce said Beijing hoped the two major European economies would continue to support openness, cooperation and free trade rather than encourage the European Union to expand the use of trade protection instruments. The comments followed reports that Paris and Berlin had called for stronger EU trade defenses and new mechanisms to respond more quickly to perceived market distortions.

The Chinese government said economic interdependence should not automatically be viewed as a security risk and argued that closer commercial ties can support development. Beijing also warned that efforts to separate supply chains could harm businesses and economies on both sides without necessarily improving their competitiveness.

The remarks come as economic relations between China and the European Union face growing pressure. France and Germany have proposed additional EU tools that could allow the bloc to respond more rapidly to practices considered harmful to European industries, including subsidies, dumping and other forms of market distortion.

The Franco-German initiative reflects broader European concerns over the impact of Chinese exports on domestic manufacturers. European officials have been seeking greater access to the Chinese market while also examining measures to address a widening trade imbalance and increased imports in sectors such as vehicles, machinery and chemicals.

Beijing has rejected the characterization of its trade practices as a justification for broad protectionist measures. Chinese officials have repeatedly called for economic and trade disputes to be handled through dialogue and consultation, particularly as China and the EU continue discussions through their trade and investment consultation mechanism.

China also called on France and Germany not to politicize economic and trade issues or expand the concept of national security into areas of normal commercial activity. The ministry argued that treating trade primarily through a security lens could increase tensions and make international supply chains less stable.

The disagreement comes at a sensitive moment for China-EU relations. European policymakers are under pressure to protect strategic industries while maintaining access to Chinese markets, whereas Beijing continues to advocate closer economic integration and opposes measures it considers discriminatory.

The automotive sector is one of the most visible areas of tension. Chinese electric and hybrid vehicle exports to Europe have expanded rapidly, prompting EU policymakers to examine additional safeguards and other trade measures. The issue is expected to remain central to ongoing negotiations between Brussels and Beijing.

Despite the differences, both sides continue to maintain channels for economic dialogue. The challenge for European governments and China will be to address concerns over market access, competition and supply-chain resilience while avoiding measures that could trigger broader trade retaliation.

China’s latest warning therefore adds another layer to an increasingly complex debate over how Europe should balance economic security with its long-standing commitment to international trade. For Paris, Berlin and Beijing, the coming negotiations are likely to test whether commercial disputes can be managed through cooperation or lead to a broader tightening of trade relations.