The European Union flags in front of EU headquarters in Brussels, Belgium. Photo: Xinhua

Chinese and EU teams have held intensive consultations this week, conducting discussions on China-EU economic and trade issues in preparations for the first meeting of the China-EU Trade and Investment Consultation mechanism, the Global Times learned from a source familiar with the matter. 

According to the source, the EU has shown a distinct lack of sincerity in the negotiations, bracing for conflict amid ongoing talks while plotting a barrage of protectionist moves that many fear could trigger an immediate trade war.

"The EU side, on the one hand, expresses willingness to talk with China, but on the other hand, lacks the sincerity in addressing problems and even prepares to launch more economic and trade restrictions. This inevitably raises concerns that the prospects of the first meeting of the China-EU Trade and Investment Consultation mechanism may be bleak," the source told the Global Times.

"The Chinese side has always been committed to consultation and dialogue with the EU side, but also stands ready to take resolute and necessary countermeasures at any time. The landscape of China-EU economic and trade relations appears increasingly complex, and existing differences could escalate further," the source said.

The EU showing no sincerity in addressing issues of China's concern. For example, no new progress has been made in the specific negotiations on price undertakings for electric vehicles (EVs) made by Chinese enterprises. In terms of export control, the EU side only asked China to address the EU's concerns in rare earth while no progress has been made in addressing obstacles faced by China's imports from the EU.

In addition, the EU has formally launched nine investigations against Chinese companies under its Foreign Subsidies Regulation, which severely impact Chinese enterprises' investments in the EU, constituting new investment barriers, according to the source. 

As for the negotiations on EU's modification on its tariff concessions on steel, the EU side has rarely responded to China's requests, even as the extent of damage caused to China is far greater than the average to other countries, the source noted.

Even more concerning is the indication from the European side that bilateral consultations will not affect the EU's plans to utilize existing economic and trade instruments or to develop new ones. This implies that a continued escalation of economic and trade friction between China and the EU appears inevitable, the source said.

Jian Junbo, director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, said that the EU's approach of ignoring China's core concerns, while bracing for conflict amid ongoing talks, is misguided and will never work.

"Experience - such as the China-US trade war - has demonstrated that China is firmly resolved to take countermeasures and that its actions are both forceful and effective. Faced with proactive provocations from the EU, the Chinese government will by no means stand idly by. It is prepared to implement a series of concrete countermeasures, including anti-discrimination investigations, inquiries into the security of industrial and supply chains, and the imposition of restrictive measures on advantageous EU products," Jian said.

"To manage differences and conflicts, the EU must stop its protectionist measures and instead take concrete steps to respond to China's concerns," Jian told the Global Times, adding that in recent years, the EU's own competitiveness problems have grown increasingly pronounced, but instead of addressing them through internal structural reforms, Brussels has been treating an internal ailment with external remedies and increasingly trying to blame China and resort to protectionism. 

This is also reflected in a series of claims and moves recently made by EU officials. Following discussions on relations with China at the EU summit last week, European Commission President Ursula von der Leyen said that the EU has already built an extensive toolbox in recent years. "Now we must use it more proactively and more strategically to defend our European interests."

Moreover, according to media reports, EU member states have authorized the European Commission (EC) to take economic and trade measures against China, and the EC is reportedly planning to impose duties on Chinese PHEVs, according to media reports. On June 22, European Central Bank President Christine Lagarde urged global leaders to discuss undervaluation of the Chinese currency as a facet of the imbalances endangering the global economy, according to media reports. 

"The EU's characterization of the so-called 'trade imbalance' with China - and the measures it has taken or proposed in response - is simply wrong. Such steps will not genuinely balance bilateral trade; rather, they risk intensifying economic frictions and even further undermining the overall China-EU relationship," Jian said.

"The more realistic and constructive approach for the EU is to properly manage its relations with China; otherwise, it will have to bear the serious consequences of China's countermeasures," Jian said.