"If some in China want to create the pretext for retaliatory action, the EU will contest this in the strongest terms," Mandelson said. "Action should be taken where this is needed but otherwise the bulk of our trade should continue as normal."

China faces growing pressure from its trading partners after a series of scares ranging from poisonous pet food ingredients and toxic fish to dangerous toys and contaminated toothpaste.

In 2006, China accounted for almost half of the 924 defective products reported by the EU's consumer protection system, RAPEX, which heightened tensions over China's trade surplus with the EU.

On Sunday, the head of China's quality watchdog described the current storm surrounding the quality of Chinese goods as a "cold wind" that was politically motivated, unfair, biased and poisoned by jealousy.

Li Changjiang said his department was doing everything possible to check quality and probe substandard goods, especially following a recent huge toy recall by Mattel Inc., which involved millions of toys across Europe.