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Exclusive: EU vows to fight ‘tooth and nail’ for European industry as China threatens retaliation

In an interview with Euronews, EU Trade Commissioner Maroš Šefčovič issued a firm warning that the European Union will not hesitate to defend its industries after Beijing signaled possible retaliation over new EU plans to bolster its industrial base.


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China this week up the pressure on Brussels, threatening countermeasures unless the EU softens core elements of its “Made in Europe” proposal—designed to tighten market access for foreign companies—and its Cybersecurity Act, which could ultimately restrict Chinese telecom firms’ presence across the bloc.

Asked about China’s reaction to what the EU describes as much-needed measures to reinforce its sovereignty and restore a level playing field, Šefčovič told Euronews the EU will “always” defend the interests of its companies.

“We will fight tooth and nail for every European job, for every European company, for every open sector, if we see they are treated unfairly,” said Šefčovič in comments to Euronews in an exclusive interview Friday.

Ballooning trade deficit in detriment to EU

Relations between Brussels and Beijing have deteriorated sharply over the past year, with China tightening export controls on rare earths vital to Europe’s clean-tech and defence industries, as well as restricting chips essential to the automotive sector, intensifying pressure on already fragile supply chains across the bloc.

In response, the EU has pushed for legislative proposals in the domain of cybersecurity and single market rules for companies, prompting a sharp reaction from China which has accused the EU of unfair practices. Earlier this week, Beijing said the EU should not underestimate China’s “firm resolve” to safeguard its interests.

Šefčovič rejected the suggestion that recent developments signal a looming trade war but stressed that the EU does not operate under pressure and expects to be treated with respect. “We never threaten our partners, and we certainly don’t do it through the media,” he said. “What we need is strategic patience and a great deal of courage.”

He said a “war” is often easy to start, but difficult to exit. A Chinese official told Euronews Beijing does not wish for a trade spat to escalate, but said China is serious about what it considers discriminatory practices. The EU disputes discrimination.

The EU’s trade chief pointed to a ballooning trade deficit between the two sides as a cause for concern. The bloc’s trade gap with China surged to €359.3 billion in 2025, a level Šefčovič called “simply unsustainable” that does not show signs of improvement.

He also said policymakers, the European parliament and economic actors in the EU have delivered “a very strong economic and political reaction” to tackle the trade deficit.

So far, Brussels has failed to secure meaningful commitments from Beijing to rebalance trade relations. At the same time, EU officials are growing increasingly concerned that Chinese exports—shut out of the US market by higher tariffs—are being redirected towards Europe. Brussels also points to China’s overcapacity as a source of concern.

The EU is now pressing Beijing to enter serious negotiations and deliver concrete results.

“I invited the Chinese foreign minister to visit Brussels because I think we need a very thorough assessment of the current situation,” Šefčovič told Euronews. “What I want is constructive engagement.”

Faced with a surge in low-cost Chinese imports, the EU is relying on trade defence instruments to counter what it sees as dumped and heavily subsidised goods, while also monitoring efforts by Chinese firms to bypass restrictions by shifting production outside China. Šefčovič made clear the EU will not be pushed into retreat from those issues.

“There are very strong industrial policies in China. You have the same in the US, in Canada, in Japan and in Korea. So, nobody should be surprised if the European Union responds in kind—especially when it comes to public money and public funds.”

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China pushes EU capitals to scrap ‘Made in Europe’ law or face retaliation

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China has called on EU member states to revise the bloc’s proposed “Made in Europe” legislation, according to Suo Peng, trade and economy minister at China’s mission in Brussels.


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The European Union is currently debating the draft, which was unveiled by the European Commission in March and aims to impose stricter conditions on foreign companies seeking access to EU public procurement and investment opportunities.

The proposal — widely interpreted as targeting Chinese firms — has already drawn a warning from Beijing. Earlier this week, China’s commerce ministry said it would consider retaliatory measures if the EU proceeds without significant changes.

“Chinese embassies in EU member states have conveyed China’s comments and suggestions to the governments of their hosting countries,” Peng told journalists in Brussels.

He added that if the EU “insists on this punishment and treats China’s enterprises in a discriminatory manner,” Beijing would be forced to respond with countermeasures.

Public procurement rules and investment limits

The so-called Industrial Accelerator Act would, if adopted by EU governments and the European Parliament, prioritise European-made products in public procurement in sectors considered strategic, including automotive, green technologies, and energy-intensive industries such as aluminium and steel.

It would also place conditions on foreign direct investment exceeding €100 million in areas such as batteries, electric vehicles, solar panels and critical raw materials.

Companies from countries with more than 40% global market share in a given sector could be required to form joint ventures with European partners and transfer technology. At least half of jobs in such projects would also need to go to EU workers.

China has criticised the measures as discriminatory, with Peng accusing the EU of double standards on technology transfer rules. He pointed to a 2018 joint statement with the United States and Japan opposing forced technology transfers.

Divisions within the EU

EU member states remain split over the proposal. France is pushing for stricter local content requirements, while Germany and others are calling for a broader approach that includes cooperation with like-minded partners.

Some countries have also warned that the rules could increase costs and limit access to innovation.

The proposal includes a reciprocity principle in public procurement, meaning the EU would only open its market to countries that grant similar access to European firms.

China, which does not currently have such an agreement with the EU, says it is open to a bilateral deal on government procurement. Peng urged Brussels to respond “as soon as possible”.

Otherwise, he warned, the plan “will seriously damage the actual interests of Chinese and European companies.”

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