BEIJING, May 7 (Xinhua) -- China has firmly rejected the European Union's (EU) groundless designation of China as a so-called "high-risk country" and its decision to restrict funding support for projects using Chinese inverters, devices that convert solar panels' direct current output into alternating current for use in homes and industrial facilities, China's Ministry of Commerce said on Thursday.

File photo: CFP

A spokesperson for the ministry made the remarks in response to media reports that EU officials had stated the bloc would prohibit funding support for projects using inverters from "high-risk countries" such as China.

"Without any concrete evidence, the EU has, for the first time, designated China as a 'high-risk country' and, on that basis, banned funding for projects using Chinese inverters," the spokesperson said. "This constitutes an act of stigmatization against China and subjects Chinese products to unfair and discriminatory treatment. China rejects and firmly opposes this move."

The spokesperson further noted that labeling China as a "high-risk country" will undermine mutual trust between China and Europe, disrupt bilateral economic and trade cooperation, and threaten the stability of China-EU and global industrial and supply chains. "In the long term, it risks decoupling and disrupting supply chains," the spokesperson added.

According to the spokesperson, the EU's forced measures to exclude Chinese products violate market principles and fair competition. "These actions not only harm the interests of Chinese companies but will also backfire on the EU itself, affecting its green transition and energy security."

China urges the EU to immediately cease the stigmatizing practice of listing China as a "high-risk country" and to withdraw the unfair, discriminatory measures against Chinese products, the spokesperson said, adding that China will closely monitor and carefully assess the impact of EU policies on the legitimate rights and interests of Chinese enterprises, as well as on China-EU industrial and supply chains.

Necessary actions will be taken to protect the lawful rights and interests of Chinese companies, according to the spokesperson.