Von der Leyen says EU is weighing additional import curbs on China

The European Union is looking at ways to restrict Chinese imports that go beyond the safeguard measures it agreed with Beijing last week, likely targeting sectors including chemicals and industrial machinery.

Its chief says the action is backed by EU leaders in a bid to combat massive trade deficit with China.

This is followed by a swift rebuke from officials in Beijing who have urged the EU to refrain from protectionist measures and promote the steady and sound development of China-EU economic and trade relations.

The bloc's trade commissioner Maros Sefcovic recently sealed a deal with the Chinese government that would slash its annual imports of hybrid vehicles from China to 350,000 units, less than half of expected deliveries this year. Rare earth licensing was also discussed.

However, European Commission President Ursula von der Leyen has indicated the agreement would not fix the structural imbalance, pointing to EU's 1-billion-euro trade deficit with China daily.

She says they are proposing additional curbs on Chinese goods.

"Our industries have called for action and we have heard them and we will respond, including some more safeguards," von der Leyen says at a news conference following an EU summit in Brussels.

French President Emmanuel Macron has said the focal points should be chemicals, plastics and ferro-alloys.

Building on a Franco-German proposal for a rapid-response trade tool, von der Leyen announces the Commission is developing a new instrument limiting access to the EU single market. The EU will also propose a "solidarity mechanism" that is expected to set out what they can do when one of the member states is "subject to coercion or retaliation."

China's top diplomat Wang Yi, who is visiting Croatia, says the earlier trade talks have shown bilateral differences can be resolved through dialogue on an equal footing while calling for deepening their comprehensive strategic partnership.

Wang stresses the two sides are "partners, not adversaries," adding there's no fundamental conflict of interests between them. Meanwhile in Beijing, the commerce ministry dismisses claims that EU pressure yielded results in hybrid vehicle negotiations as entirely ungrounded.

A spokesperson argues reciprocal and mutually beneficial understanding reached on the basis of three principles agreed upon by both sides have addressed the EU's concerns and prevented further frictions.

The official points out the EU should not expect to gain benefits by exerting pressure and it shouldn't underestimate China's determination and ability to safeguard its own interests. The foreign ministry also urges the bloc to honour its commitment to free trade and openness, abide by World Trade Organization rules and avoid introducing protectionism and discriminatory policies.