Plans outlined by the European Commission to implement a Carbon Border Adjustment Mechanism (CBAM) from 2026 would force companies sending carbon-intensive products into the European Union (EU) to pay carbon costs on such shipments.
"CBAM is essentially a unilateral measure to extend the climate change issue to the trade sector," said Ministry of Ecology and Environment spokesman Liu Youbin. "It violates WTO principles ... and (will) seriously undermine mutual trust in the global community and the prospects for economic growth."
The U.S. has also raised questions about the potential EU carbon tax, with U.S. Trade Representative Katherine Tai indicating the U.S. would not shy away from confronting the EU on the matter.