China criticizes Germany, France over calls for new EU trade tools

"Protectionism cannot enhance competitiveness," a spokesman for the Chinese Commerce Ministry said on Tuesday, adding that decoupling and severing supply chains would harm others without bringing benefits at home.

Germany and France should remain committed to openness and free trade and abide by the rules of the World Trade Organization, the ministry said.

Beijing urged the two countries not to push the European Union towards using protectionist measures or politicize economic and trade issues.

Germany and France on Monday launched a fresh push for EU measures against unfair trade practices by other states.

In a letter to European Commission President Ursula von der Leyen, German Chancellor Friedrich Merz and French President Emmanuel Macron said market-distorting practices are threatening competition for European companies and leading to growing dependency.

Existing instruments are no longer sufficient, they said, proposing two new measures.

One is aimed at diversification, designed to ensure that companies do not become too dependent on suppliers from individual countries. The second is a procedure that would allow another country to be excluded from the European single market on an expedited basis.

The leaders did not name any specific country in the letter. The backdrop, however, is likely above all Chinese trade policy. The EU has an enormous trade deficit with China and wants to protect its industry from the competition.

China's criticism comes ahead of a new round of trade talks. EU Trade Commissioner Maroš Šefčovič is expected in Beijing on Thursday and Friday for talks with Chinese Commerce Minister Wang Wentao on strained economic relations.