Chinese officials said Wednesday that there's no new trade skirmish with the European Union though China worries about a tendency towards protectionism in the EU.

"It cannot be said that another round of trade war has begun, or will begin, between China and the EU. We don’t agree with such a statement, though China is highly concerned and worried about the tendency of trade protectionism that has recently appeared in the steel industry of the EU. 

We hope the EU can view rationally and objectively the problems in its steel industry, guide the public opinion positively, be cautious in launching trade remedy investigations and restrictive measures, and refrain from signalling trade protectionism and inciting protectionist sentiment," said Commerce Ministry Spokesman Shen Danyang

The EU announced at the end of July that beginning this month it would implement a higher tax on steel products imported from China. The announcement sparked reports of another round of trade war between the two sides. Shen said that Chinese steel imports are less than five percent of the EU market so they have no impact on the sector.

Shen said the root cause of the EU steel industry’s troubles is a sluggish economy. He urged the EU to rationally analyze the situation and find the right path out of the predicament. Shen said that China imports much steel from the EU and there's great potential for the two sides to extend their cooperation.