Abstract: The EU Carbon Border Adjustment Mechanism (CBAM), which applies to traditional carbonintensive industries such as steel and electricity, aims to complement the EU Emissions Trading System (ETS) by gradually eliminating free carbon allowances and preventing carbon leakage. Given the export volume and product structure of Chinese products, carbon-intensive products are highly related to the CBAM, which will significantly impact China’s participation in global climate governance and its competitiveness in international trade. To effectively respond to the CBAM, China can consider, at an opportune moment, resorting to the WTO dispute resolution mechanism and contemplate coordinating new plurilateral agreements on environment and
trade. This would enable China to actively engage in negotiations for the liberalization of environmental products and services, break down trade protectionism, and promote a green economy. In the long run, China should take the initiative to accelerate the green transformation of high-carbon industries, establish and improve the design of the carbon trading market and carbon tax system, and guide a top-down climate trade compliance management plan from the government to enterprises. These measures will help China effectively cope with climate change and enhance the competitiveness of Chinese products in international trade.

Key words: carbon emissions, EU Carbon Border Adjustment Mechanism, environment and trade;climate change