Global Times reports today that a proposal being promoted by Germany and France for the European Commission to impose new restraints on Chinese industries will, if implemented, provoke a severe response. The article states, “China on Tuesday vowed to respond resolutely to safeguard the legitimate rights and interests of Chinese industries if the EU insists on introducing discriminatory restrictions against Chinese companies or products, after media reports that some EU member states are drafting a joint document calling on the European Commission to accelerate the development of a European version of the US ‘Section 301’ tool and take tougher measures against China.”

Section 301, called “Relief from Unfair Trade Practices,” grants the Office of the United States Trade Representative (USTR) a range of responsibilities and authorities to investigate and take action (e.g., impose a tariff) to enforce U.S. rights under trade agreements or respond to certain foreign trade practices. Trump has used this several times to impose tariffs on China and other nations.