BRUSSELS (Reuters). The European Commission is set to propose a trade defense measure that will combat non-European Union member countries exerting undue force on the bloc’s members. But, there are already concerns in Brussels about the proposal.

According to diplomatic sources, this new measure, if in effect today, could be used to impose trade and investment restrictions on China to counter the growing pressure on Lithuania following the opening of a de facto Embassy by Taiwan.

China has lowered diplomatic relations with Lithuania. Officials in Vilnius claim that Beijing also placed blocks on Lithuania’s exports, and has pressured third-country companies not to do business in the Baltic country.

Reinhard Buetikofer, Greens lawmaker, stated that “if any evidence was required that the EU requires an effective instrument in order to protect itself from economic coercion from third countries”, he said.

China denies wrongdoing.

Buetikofer is also under Chinese sanctions. Buetikofer stated that in order for the Commission’s proposal to work, it should not allow one EU member to stop action.

Some members have expressed concerns about the proposal.

A diplomat for the EU said that they could expect “intensive discussions”.

France will be the rotating EU president for the first half 2022. France supports this measure. However, more market-oriented countries like Sweden and Czech Republic see it as protectionist, and could draw the EU into trade wars.

They say that economic coercion must be clearly defined and should only be used if the law is violated and it’s in the EU’s best interest to do so.

Some EU members state that they want to be involved in the deployment of these measures rather than leaving decisions up to the Commission or the EU executive. Foreign policy sanctions are subject to the veto power of governments.

One EU diplomat stated that “we need to pay attention how wide the measure is.”

When it becomes law, this proposal will add to EU’s existing measures. These include screening for foreign investment, restricting firms from receiving foreign subsidies, and curbing public procurement of businesses in countries that don’t open up their market.