Deep frictions exist over economic relations between the 27-nation bloc and Beijing.
Brussels is worried that a manufacturing glut propelled by massive state subsidies could add to a yawning trade deficit and result in a flood of cheap Chinese goods undercutting European firms.
Speaking during a visit to Beijing ahead of a major EU-China summit in the city this month, Teresa Ribera dismissed China's claims that the bloc was engaging in "protectionism".
"We Europeans don't want to go down a race towards low incomes, lower labour rights or lower environmental standards," said Ribera, who also serves as the bloc's competition chief.
"It is obvious that we could not be in a good position if there could be an ... over-flooding in our markets that could undermine us with prices that do not reflect the real cost," she said.
The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicle imports in October and has investigated Chinese-owned solar panel manufacturers.
Asked whether EU moves against Chinese green energy firms could harm the global transition to renewables, Ribera said: "It is fair to say that, yes, we may benefit in the very short term."
However, she also warned "it could kill the possibility" of long-term investment in the bloc's future.
- Global disruption -
Ribera's visit comes as Beijing seeks to improve relations with the European Union as a counterweight to superpower rival the United States, whose President Donald Trump has disrupted the global order and pulled Washington out of international climate accords.
"I don't think that we have witnessed many occasions in the past where a big economy, a big country, decides to isolate in such a relevant manner," she told AFP.
"It is a pity.
"The Chinese may think that the United States has given them a great opportunity to be much more relevant in the international arena," Ribera said.
The visit also comes as the bloc and the United States wrangle over a trade deal. Trump threw months of negotiations into disarray on Saturday by announcing he would hammer the bloc with sweeping tariffs if no agreement was reached by August 1.
Ribera vowed on Monday that the EU would "defend the interests of our companies, our society, our business".
Asked if a deal was in sight, she said: "Who knows? We'll do our best."
However, she insisted that EU digital competition rules -- frequently condemned by Trump as "non-tariff barriers" to trade -- were not on the table.
"It's a question of sovereignty," Ribera said.
"We are not going to compromise on the way we understand that we need to defend our citizens and our society, our values and our market."
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