EU warns China of retaliation

 European Commission president Ursula von der Leyen said the bloc will retaliate against China if it fails to deliver tangible changes to unfair trade practices by October, reported Lyons' Euronews.

Speaking in Cork, Ireland, Ms von der Leyen said dialogue must deliver results and warned Brussels is "prepared for everything" with all instruments on the table. She cited China's glut of low��ost exports, restrictions on European firms and heavy state subsidies as key friction points.

Her remarks follow an EU summit where leaders gave her a mandate to adopt a tougher stance while exploring new trade tools. The Commission already has an Anti��oercion Instrument but it has never been used, prompting work on additional measures to diversify supply chains and ensure solidarity in case of reprisals.

Irish prime minister Micheal Martin said trade must be conducted fairly and expressed hope dialogue could reach a "landing zone" between Europe and China, noting global interdependence.

Trade commissioner Maros Sefcovic met Chinese counterpart Wang Wentao last week and set the October deadline, after the bloc recorded a EUR360 billion deficit with China in 2025, the first time all 27 member states posted negative balances. He said the trend is unsustainable and the status quo not an option.

Bernd Lange, chairman of the European Parliament's trade committee, has said the October deadline is "not realistic at all" if Brussels wants binding concessions.