BEIJING, (Xinhua): China is willing to work with the European Union (EU) on global climate change, but will firmly take all necessary measures in response to any unfair trade restrictions, the Ministry of Commerce said Thursday regarding the EU’s newly effective Carbon Border Adjustment Mechanism (CBAM).
A spokesperson with the ministry said the EU has disregarded China’s achievements in green development by imposing significantly high default values on the carbon intensity of Chinese products in CBAM rules, which are set to increase annually over the next three years, terming the measures “unfair” and “discriminatory.”
“This is inconsistent with China’s current realities and future development trends,” said the spokesperson, noting that the EU’s practices are suspected of violating World Trade Organization principles and contradict the United Nations principle of common but differentiated responsibilities.
CBAM, which officially took effect on Thursday, is the EU’s measure that imposes a carbon price on emissions embedded in certain carbon-intensive goods entering the EU and aligns the carbon cost of imports with that faced by EU producers under the EU Emissions Trading System.
The spokesperson also expressed concern and firm opposition to the EU’s draft legislation to expand the scope of CBAM to include 180 steel- and aluminum-intensive downstream products, such as machinery and automobiles, starting in 2028, criticizing that these designs exceed the scope of climate action and bear clear signs of unilateralism and protectionism.
Noting that the EU recently relaxed its internal green regulations by modifying the 2035 ban on new fuel vehicles, the spokesperson said the bloc is practicing a “double standard” by loosening internal rules while exercising protectionism in the name of green development.
China hopes the EU will adhere to international rules on climate and trade, abandon unilateralism and protectionism, keep its market open, and promote trade and investment liberalization and facilitation, the spokesperson said.
While China is willing to work with the EU to address global climate change challenges, it will firmly take all necessary measures against any unfair trade restrictions to safeguard its development interests, the legitimate rights and interests of Chinese enterprises, and the stability of global industrial and supply chains, the spokesperson said.
