The European Union is set to unveil powerful trade penalties that could see China or other countries accused of economic bullying lose access to lucrative parts of the EU market, such as its giant financial services, its chemical sectors or its food markets, the SCMP said in a report on Tuesday.
Countries that “interfere in the legitimate sovereign choices” of the EU or one of its 27 states by applying or threatening to apply moves that affect trade or investment could face tariffs, suspension of market access via the use of quotas or trading licences, and restricted access to procurement programmes and investment markets. Other penalties under the “last resort” proposal – which has arisen because of a spat between Lithuania and China over Taiwan – could involve goods being blocked by EU export controls or intellectual property rights being cut.
Read the full story: South China Morning Post.
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