Chinaupdated 1h ago2 min read
China Warns EU Against “Fantasise” After Brussels Confirms Single Market “Kill Switch”
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Brussels confirms a new trade 'kill switch' mechanism with China. China warns EU not to fantasise about a simplistic trade approach.
5 outlets told this the same way.
EU “kill switch” row
Beijing warned Brussels not to “fantasise” that taking a hard line will force concessions, after Brussels confirmed plans for a new “kill switch” that would let it “immediately” kick China out of the single market. China’s Ministry of Commerce said, “The EU should not fantasise about gaining benefits through pressure, nor should it underestimate China’s determination and ability to safeguard its own interests,” as the flare-up followed a surprise deal to restrict the volume of hybrid cars China ships to Europe.
Brussels’ approach also fed into a broader push for trade defence, as EU leaders backed safeguards and discussed shielding chemicals and industrial machinery from Chinese imports. The EU leaders’ debate in Brussels included a cap on Chinese hybrid cars at 350,000 a year from 2027, with the discussion framed around using safeguard measures like import quotas and tariffs.
Talks, consensus, and numbers
China’s commerce vice-minister Ling Ji said the second meeting of the China-EU trade and investment consultation mechanism produced “a series of consensus and outcomes” that would provide stability and certainty for business cooperation. Ling Ji met Tobias Meyer, CEO of DHL Group, and the Chinese official said the government was accelerating the building of a unified national market with an efficient, modern logistics network to provide “broader development opportunities” for logistics companies including DHL.
The China Daily account said the mechanism’s outcomes were jointly chaired in Beijing by Minister of Commerce Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic, and it said the list covered 16 specific points of consensus. The same report cited official data showing China’s foreign direct investment (FDI) equity stock reached 26.8 trillion yuan ($3.99 trillion) in 2025, and it said FDI in high-tech industries rose 35.1 percent year on year to 200.26 billion yuan in the first eight months of 2026.
Stakes for trade tools
EU leaders prepared to unite on tougher China trade defence while clashing over carbon pricing rules, as Europe’s trade deficit with China reached a record $34.8bn [€31bn] in September. EU diplomats said a joint letter and policy paper submitted by Emmanuel Macron and Friedrich Merz to Ursula von der Leyen marked a shift toward a more consolidated EU stance on trade relations with China.
The Edge Malaysia reported that Beijing warned of a response “if the EU introduces new tricks while negotiating,” and it quoted Tu Xinquan saying, “This is a special arrangement and will not become a precedent for other sectors.” The Edge Malaysia also said the EU planned to cap imports of hybrid cars from China at 350,000 per year starting from December, and it added that the cap would shave about 1.5% off China’s overall sales to Europe and 0.2% from its global exports, according to Bloomberg Economics.