China threatens EU with retaliation as EU mulls “kill-switch” to defend its market

China's ambassador to the EU, Cai Ruan, threatened on Thursday to retaliate if the EU adopted unilateral measures against Chinese interests. The statement came as the European Commission is working on a new trade defence tool, dubbed a kill switch, that could cut off Chinese access to the EU market in the event of serious market disruption caused by its aggressive trade policies. If the EU side insists on adopting restrictive and discriminatory measures against China, China will have to take countermeasures to firmly safeguard its interests, said the Chinese diplomat. As the EU faces a record high trade deficit with China of 1 billion euros a day, Brussels is seeking to protect its market from low-cost Chinese imports, Which have surged by 25% over the past year according to Chinese customs. EU Trade Commissioner Maroš Ševčovič told MEPs that the tool should be presented by the end of the year and would allow the EU to react much faster. Presented as a country agnostic, the tool would nevertheless directly target Chinese interests, which rely heavily on the EU's 450 million consumers to sell their excess of production.