“There is no specific reason for retaliation,” Paolo Gentiloni, the EU’s economy chief, told reporters ahead of a meeting in Santiago de Compostela, Spain, on Friday. “But retaliation is always possible in this kind of thing.”
Europe has deep trade ties with China, a fact that would make the EU particularly vulnerable if the probe escalated into a trade war. German automakers Volkswagen AG, Mercedes-Benz AG and Bayerische Motoren Werke AG have built dozens of factories in China and all three manufacturers now sell more vehicles in China than any other market.
“We have every interest to strike the right balance between ensuring a level playing field at a global level but of promoting international trade,” Spanish Finance Minister Nadia Calvino told reporters before a meeting with her euro-area counterparts. “I am sure that the European Commission will get it right on that front.”