EU ambassador: no trade war with China

The European Union's ambassador to China said on Wednesday that The EU will not be drawn into a trade war with China.

The remark came a day after sources said the European Commission announced that China was illegally subsidizing its steel producers.

EU ambassador to China Markus Ederer said he was puzzled by and flatly rejects any reports of a trade war between the two economies which was the second largest trading relationship in the world last year, and has consistently been the top trading relationship before 2012.

The European Commission is investigating 37 dumping and subsidy cases, 21 of which involves China. China's Commerce Ministry spokesman Shen Danyang described on Wednesday the Commission's investigation into steel subsidies as "unreasonable".