china warns eu: tariff threats endanger global tech supply chain

2025-07-07 general

beijing, Monday, 7 July 2025.
a french finance minister’s call for stronger trade barriers against chinese imports has triggered a firm response from china. a leading chinese expert insists that such protectionist measures could backfire. the expert also noted that these actions would violate wto principles. the semiconductor industry is especially vulnerable. companies like tsmc, nvidia and asml could face disruptions. china remains open to dialogue. recent tariffs imposed on european brandy, while exempting firms agreeing to minimum price levels, highlight china’s measured approach.

french minister’s call for tariffs

French Finance Minister Eric Lombard recently advocated for stronger tariff barriers against Chinese imports [1][2][3]. Lombard stated that Europe must protect its industries from what he described as China’s overcapacity, where some sectors allegedly have over 50% of the global market share [2][3]. This stance highlights growing concerns in paris regarding the potential impact of global trade shifts on european industries [2]. France’s Industry Minister, Marc Ferracci, echoed these sentiments, noting that Chinese capital, initially aimed at the US, is now flowing into Europe, creating sensitivity and risk for european sectors [2].

china’s response and wto principles

A chinese expert on china-europe relations responded by firmly opposing trade barriers against chinese products [1]. Cui Hongjian, Director at Beijing Foreign Studies University, emphasized China’s commitment to dialogue with france and the eu to resolve trade concerns and maintain stable bilateral relations [1]. Cui also stated that imposing trade barriers would violate the world trade organization’s (wto) non-discrimination principle and principles of fair and open trade [1]. Wang Yi, China’s Foreign Minister, expressed china’s willingness to deepen cooperation and hopes france will provide a more favorable environment for chinese enterprises [1].

semiconductor industry impact

The semiconductor industry is particularly at risk due to potential trade barriers [1]. Disruptions to the flow of crucial components and technologies could adversely affect companies like tsmc, nvidia, and asml [1]. These companies rely on global supply chains [1]. Increased tariffs may lead to higher costs and disruptions in production and distribution, potentially influencing investor sentiment and stock performance [1]. An analyst specializing in trade noted that the eu’s moves are a direct challenge to china’s dominance in the semiconductor market [7].

expert opinions and market dynamics

Philippe Le Corre, Director of the Asia program at the ESSEC Business School, suggested that the eu is adopting a more pragmatic approach to trade with china, focusing on protecting local industries [2]. Le Corre believes that if china maintains its current export levels, europe will automatically create barriers to ensure fair competition [2]. Zhang Lin, the chief representative of the german association of the automotive industry in china, stated that chinese companies should use local cooperation to break through trade barriers [6]. This would avoid bringing excessive competition to overseas markets [6].

china’s measured response

China recently imposed anti-dumping duties on european brandy while exempting major cognac makers who agreed to minimum price levels [1]. Cui Hongjian views china’s handling of the anti-dumping investigation into eu brandy as a responsible use of trade remedy measures under wto rules [1]. This action reflects china’s commitment to fair trade and mutual benefit [1]. These tariffs, while targeted, demonstrate china’s willingness to use trade measures strategically while seeking negotiated resolutions [1][3].

Bronnen

trade barriers china europe relations