China has attacked the Group of Seven nations for what it called interference in its internal affairs and chastised a top European official for criticising Beijing’s rare earth and economic policies.

Ministry of Foreign Affairs spokesman Guo Jiakun formally protested a statement issued by Canadian Prime Minister Mark Carney after the G7 meeting in Alberta that called on China to “refrain from market distortions and harmful overcapacity.”

Speaking at a regular briefing in Beijing on Wednesday, Guo responded by calling the comments “irresponsible,” “manipulative” and a “smear".

The back-and-forth has rekindled a debate about whether Chinese products are flooding global markets and threatening economies elsewhere.

Beyond worries over trade and industrial policy, the G7 leaders also discussed their “ongoing serious concerns about China’s destabilising activities in the East and South China Seas and the importance of maintaining peace and stability across the Taiwan Strait,” according to the statement.

Guo denied there’s any “overcapacity and market distortion” resulting from Chinese actions, saying that such claims were merely “an excuse to practice trade protectionism” and suppress China’s industry.

The statement “interfered in China’s internal affairs and violated the basic principles of international relations,” he added.

Guo also chided European Commission President Ursula von der Leyen, who said at the G7 meeting that the world is experiencing a new “China Shock.”

She accused Beijing of using its quasi-monopoly over some sectors “not only as a bargaining chip, but also weaponising it to undermine competitors in key industries.”

“As China’s economy slows down, Beijing floods global markets with subsidized overcapacity that its own market cannot absorb,” Von der Leyen said.

Her comments came as the European Union refused to hold an economic meeting with China due to a lack of progress on trade issues.

In response to Von der Leyen’s remarks, Guo said that “China’s industrial subsidy policy has always adhered to the principles of openness, fairness and compliance.”

“We hope that the EU can work with China to jointly create an open, transparent and non-discriminatory business environment to promote the common development and mutual benefit of both sides,” he said.

Von der Leyen is expected to visit China for a summit meeting late next month.