China Warns EU: Expect Countermeasures if New Cybersecurity Act Discriminates Against Chinese Firms

• EU Cybersecurity Revision: China formally objects, warns of countermeasures against discrimination.
• US Tariff Policy: China gives “qualified approval” to new refund system for importers.
• Diplomatic Stance: Beijing emphasizes dialogue and global supply chain stability.
• Economic Impact: China highlights that US tariffs are primarily paid by US consumers.

Beijing just fired a warning shot across Europe’s bow.

On April 23rd, China’s Ministry of Commerce (Shangwu Bu 商务部) made it crystal clear: if the EU’s revised cybersecurity rules unfairly target Chinese companies, China is prepared to fight back.

This isn’t just posturing—it’s a calculated diplomatic move that signals serious friction brewing between two major economic powers over trade fairness and tech regulation.

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China Formally Objects to EU’s Cybersecurity Act Revision

He Yongqian (He Yongqian 何咏前), spokesperson for China’s Ministry of Commerce (Shangwu Bu 商务部), delivered the message during a regular press conference.

The key details:

• China officially submitted comments and suggestions to the European Commission on April 17th regarding the draft revision of the EU Cybersecurity Act.
• The submission outlined China’s official position and serious concerns about the proposed changes.
• Beijing is urging the EU to take these feedback items seriously and consider the modifications China has proposed.

Translation: China sees something in this draft that threatens its companies’ ability to do business in Europe, and they want the EU to pump the brakes before finalizing anything.

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The Countermeasures Threat: What China Is Actually Saying

Here’s where things get real.

China made an explicit statement: if Chinese enterprises face discriminatory treatment as a result of these EU revisions, China reserves the right to take necessary measures to safeguard the legitimate rights and interests of Chinese companies.

The spokesperson framed this within two pieces of Chinese legislation:

• The Foreign Trade Law of the People’s Republic of China (Zhonghua Renmin Gongheguo Duiwai Maoyi Fa 中华人民共和国对外贸易法)
• The Regulations of the State Council on Securing Industrial and Supply Chains (Guowuyuan Guanyu Chanyelian Gongyinglian Anquan de Guiding 国务院关于产业链供应链安全的规定)

Translation: China has legal cover to retaliate if it determines the EU is playing unfair.

What might countermeasures look like?

That’s left intentionally vague—which is part of the strategy.

But historically, when China feels it’s being unfairly targeted by trade regulations, responses can include:

• Retaliatory tariffs on European goods
• Restrictions on EU companies operating in China
• Tightened scrutiny of EU investments in sensitive Chinese sectors
• Trade restrictions on European exports to China

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Beijing Still Prefers Dialogue Over Conflict

Here’s the interesting part: China didn’t just threaten.

The Ministry also emphasized that cooperative dialogue is the correct path to resolving differences between China and Europe.

China expressed willingness to handle disagreements through consultation with the EU.

The stated goal: jointly maintain the stability and smooth flow of global industrial and supply chains.

This signals something important.

China isn’t looking for a trade war with Europe—it’s looking for a seat at the negotiation table.

The threat of countermeasures is leverage to get Europe’s attention and get Chinese concerns addressed before the revised cybersecurity rules are finalized.

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Meanwhile: US Tariff Refund System Gets China’s Qualified Approval

In the same briefing, He Yongqian addressed developments in U.S. trade policy.

China has consistently opposed unilateral tariff increases, particularly measures China views as violating international trade rules.

The spokesperson characterized unilateral measures—such as reciprocal tariffs and fentanyl-related tariffs—as:

• Violations of international economic and trade rules
• Violations of U.S. domestic law
• Harmful to the global trade order
• Not serving the interests of any party involved

But here’s where it gets interesting.

When the U.S. Customs and Border Protection announced a new system for large-scale tariff refunds to importers (launched on April 20th), China’s response was notably measured.

He Yongqian described the move as a beneficial step toward correcting previous policy mistakes.

That’s diplomatic language for: We appreciate the U.S. acknowledging it overstepped.

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Who Actually Bears the Cost of These Tariffs? The Answer Matters.

Here’s a key insight the spokesperson highlighted:

“It should be clarified that these tariffs are collected directly by U.S. Customs from U.S. importers and are ultimately borne by U.S. consumers.”

This distinction is critical because it reframes the entire tariff debate.

When tariffs are imposed on Chinese goods imported to the U.S., American importers pay the tariff to U.S. Customs.

Those costs don’t magically disappear—they flow through to American businesses and ultimately to American consumers in the form of higher prices.

China’s point: tariffs designed to punish Chinese exporters end up punishing American consumers instead.

The refund system is essentially an acknowledgment that these tariffs harmed American interests more than Chinese ones.

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What Chinese Export Enterprises Should Do Right Now

The Ministry of Commerce offered practical guidance to Chinese exporters:

“We advise Chinese export enterprises to communicate actively with relevant stakeholders based on their specific situation to protect their legitimate rights and interests.”

What does this mean in practice?

• Engage with U.S. importers and distributors to understand which tariffs may apply to your products and whether refunds are available.
• Document tariff payments made to U.S. Customs to support any refund claims.
• Monitor EU regulatory developments regarding the cybersecurity act revision to anticipate potential impacts on your business model.
• Stay informed on trade policy shifts in major markets where you operate.

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The Bigger Picture: Trade Tensions in 2025

These developments reveal a shifting trade landscape.

China is:

• More willing to publicly push back against regulations it views as discriminatory
• Leveraging formal complaint mechanisms and diplomatic channels
• Explicitly warning of retaliatory measures while maintaining a door for dialogue
• Reframing tariff debates around consumer impact rather than just corporate impact

Europe and the U.S. are grappling with how to regulate tech and trade in ways that don’t spark major trade wars.

The real question isn’t whether tensions exist—it’s whether these three economic powers can find a way to coexist without escalating into full-scale trade conflict.

For now, China is signaling: we prefer negotiation, but we’re prepared for confrontation if you force our hand.

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References

• Ministry of Commerce: Measures will be taken if Chinese companies are discriminated against due to EU’s revision of the “Cybersecurity Act” – Xinhua News Agency
• Official Website of the Ministry of Commerce of the People’s Republic of China – Ministry of Commerce
• China Economy and Trade News – Reuters