China warns EU not to ‘fantasise’ on trade approach after ‘kill switch’ threat

Beijing warned Brussels not to “fantasise” that taking a hard line will force it into concessions, as the bloc confirmed plans for a gung-ho new kill switch that will allow Brussels to “immediately” kick China

out of the single market.

Exactly a week after the two sides struck a surprise deal to restrict the volume of hybrid cars China ships to Europe

, the flare-up suggests the threat of a trade war between two of the world’s three biggest economies has far from subsided.

The statement was in response to reports from the South China Morning Post

and other media that Brussels believed that tough talk from Europe had forced Beijing to make a deal.