China Opposes EU Carbon Border Tax As Trade Barrier

China's Ministry of Commerce has expressed concerns regarding the EU's Carbon Border Adjustment Mechanism (CBAM), arguing that its design exhibits trade protectionist tendencies and unfairly impacts Chinese exports. China emphasizes the principle of "common but differentiated responsibilities" and urges the EU to adhere to international rules, abandon protectionism, and jointly promote green trade and investment. China also stresses the importance of maintaining the stability of global supply chains.
China Opposes EU Carbon Border Tax As Trade Barrier

As the world grapples with intensifying climate crises, the European Union's Carbon Border Adjustment Mechanism (CBAM) has ignited international controversy. While designed to prevent carbon leakage and accelerate green transitions, critics argue the policy carries protectionist undertones that could undermine global climate cooperation. Recent responses from China's Ministry of Commerce highlight concerns that CBAM's design deviates from climate governance principles and unfairly targets Chinese exports.

CBAM's Controversial Provisions: Rigid Standards and Double Standards

The EU's finalized CBAM regulations, set for full implementation by January 2026, reveal several contentious measures. Notably, Brussels established default carbon intensity values significantly exceeding China's actual emission levels, with plans for progressive increases over three years. More alarmingly, the EU intends to expand CBAM's coverage by 2028 to approximately 180 downstream products—including machinery, automobiles, components, and household appliances predominantly manufactured from steel and aluminum.

Chinese officials contend these requirements misrepresent China's current green development trajectory, creating discriminatory trade barriers. The Ministry of Commerce asserts the mechanism has "transcended climate governance objectives," exhibiting unilateralism and protectionism.

Meanwhile, the EU faces accusations of double standards—imposing strict carbon requirements on developing nations while weakening domestic climate policies, including delays to its 2035 combustion-engine vehicle ban.

China's Stance: Common But Differentiated Responsibilities

Beijing emphasizes the principle of "common but differentiated responsibilities" in climate action, urging recognition of varying national development stages, historical emissions, and practical capacities. Applying developed-world carbon standards uniformly across developing economies, China argues, exacerbates conflicts between climate and trade rules while disproportionately burdening emerging markets.

This framework acknowledges developed nations' greater historical contribution to global warming, assigning them larger emission reduction obligations and financial/technological support duties. Developing countries—while committed to climate governance—require policy flexibility to prioritize economic growth and livelihood improvements.

Call for Cooperation: Balancing Climate Action and Equity

China has urged the EU to align CBAM with international climate and trade norms, abandoning protectionist approaches in favor of scientifically grounded, non-discriminatory solutions. Beijing expresses willingness to collaborate on climate challenges but vows to safeguard its developmental rights, corporate interests, and global supply chain stability.

The path forward, analysts suggest, requires cooperative multilateralism rather than punitive measures. As a major global actor, the EU faces calls to adopt inclusive policies that engage developing nations like China in building equitable climate governance systems.