The Minister for Enterprise, Trade and Employment has said Irish companies operating in, and exporting to China must be treated fairly.
Speaking ahead of a meeting of EU trade ministers, which will focus on the relationship with the US and China, Simon Coveney said: "We need, of course, to talk to China, to have a relationship with China, but at the same time to protect our own industries and our own companies that may be operating in China and exporting to China.
"The key issue here is ensuring that there's a level playing field, that Irish companies in China are treated fairly, that when we import products from China, that the competition with potential competitors here in the EU, is fair competition. That's not easy to achieve."
EU member states have become increasingly wary of China’s assertive new industrial policy, which allegedly subsidises large industries - such as the automotive and electric vehicle sectors - which are in direct competition with European rivals.
There have been calls for the EU to follow the US lead and contemplate more protectionist measures, rather than to counter-subsidise European industry.
France has already said it will reserve its €7,000 electric car subsidy for vehicles and batteries which are made in Europe.
A senior EU official warned that Europe had limited time to develop an indigenous electric vehicle sector.
"We have a once in a lifetime opportunity to build a European battery ecosystem," said the official.
"If we don't do it now we will have big problems doing it later because once our automotive industry is locked in with Chinese battery suppliers it will be very difficult to create our battery ecosystems in Europe.
"We should never forget that with these new electric vehicles, batteries represent between 50-60% of the value of the vehicle."
The EU’s trade commissioner, Valdis Dombrovskis, will also brief ministers on the state of play in the EU-Mercosur trade agreement this afternoon.
Mr Coveney said he remained concerned about the impact of the trade deal on the Irish beef sector, as well as the risks of deforestation and climate change allegedly associated with the Mercosur trade deal.
"Ireland is the largest beef exporter in the northern hemisphere," he told reporters.
"What we want is a negotiation that is fair, that takes account of that Irish concern, but also takes account of the strategic interest here that Ireland and the European Union has in trying to find a way to get a deal."
The EU-Mercosur trade agreement was agreed in principle in 2019 but the texts have not yet been finalised or ratified.
Ireland has lobbied to ensure that the Irish beef sector is not undercut by imports from Brazil, which is the world’s biggest beef producer.
