China has vowed a “resolute response” if the European Union adopts new trade restrictions targeting Chinese goods, raising the stakes in a growing dispute.

Beijing was reacting to a joint Franco-German paper proposing an EU “trade emergency button”, a tool modelled on America’s Section 301 that would let Brussels act fast against unfair trade practices.

French President Emmanuel Macron and German Chancellor Friedrich Merz are expected to approve the proposal within days, according to reports. The plan would give the EU quicker powers to respond to dumping and subsidies.

China’s machinery and electronics chamber warned on Tuesday against protectionist moves, saying they would hurt European industry too. The dispute adds to tensions over electric vehicles, solar panels and industrial overcapacity. Brussels says it wants fair competition; Beijing calls the measures discriminatory. Both sides have room to negotiate before any tools are used.

Trade tensions have been rising for months over electric vehicles, solar panels and industrial subsidies. Both sides have said they prefer negotiation to confrontation.