European carbon tax under fire: China speaks of discrimination and double standards by the EU

The Chinese Ministry of Commerce has reacted sharply to the official launch of the European Union's Carbon Border Adjustment Mechanism (CBAM), which came into force on 1 January 2026. According to Beijing, the new European rules not only fail to reflect the real state of Chinese industry, but also violate the basic principles of international trade.

A spokesperson for the ministry said that in recent months, the EU has been rushing to publish legislative proposals and implementing rules for CBAM, including setting baseline carbon intensity values and plans to expand the range of products covered. According to China, the European side is overlooking the significant progress the country has made in green and low-carbon development and is setting significantly overestimated baseline emission values for Chinese products. Moreover, these values are to be increased annually over the next three years.

According to the Ministry, this approach does not correspond to the current level of the Chinese economy or its future development trend. China considers it unfair and discriminatory, suspecting it of violating the principles of the World Trade Organisation, in particular the rules of most-favoured-nation treatment and national treatment. At the same time, according to Beijing, it contradicts the principle of common but differentiated responsibilities enshrined in the United Nations Framework Convention on Climate Change.

The EU's plan to extend the scope of the CBAM to around 180 products with a high steel and aluminium content in related industries from 2028 onwards has also attracted sharp criticism. Among other things, it would apply to engineering products, cars and their components, and household appliances. The Chinese side points out that these rules already go beyond the scope of combating climate change and bear clear signs of unilateralism and trade protectionism, which Beijing strongly opposes.

The Ministry of Trade also pointed out the contradictory approach of the EU itself. While outwardly promoting strict „green“ measures and using them as a cover for protectionist policies, within the Union itself, environmental regulations are being relaxed. As an example, China cites amendments to the ban on the sale of new vehicles with combustion engines from 2035 and a general reduction in emission reduction targets. According to Beijing, this is a textbook case of double standards.

CMG