Bloomberg reported that the European Union is preparing to warn citizens and businesses about the possibility of a trade war with China, as the bloc begins considering new restrictive measures against China to rebalance their uneven economic relationship.

The European Commission stated that relations between the EU and China have become increasingly difficult to sustain and pledged to adopt strong and more coordinated countermeasures. It is understood that during a closed-door meeting last week, the European Commission convened senior officials to discuss next steps. Attendees acknowledged that retaliatory measures from China are highly likely. According to sources, officials at the meeting unanimously agreed on the need to raise public awareness in Europe about the potential escalation of trade frictions with China.

In a statement issued after the meeting, the European Commission said that China remains an important partner and that both sides will continue to maintain engagement and dialogue. At the same time, it noted that the current state of bilateral trade and investment relations is unsustainable. (mn/da)

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