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"But we should not forget China remains an attractive market-with a large and skilled labor force, efficient infrastructure and deep integration into global value chains. It is an increasingly attractive market that all producers aim to capture."

"China is no longer the developing economy that relies on low costs but today it competes on the mid- to high-end markets and if it is to be successful it has to step up the reliance and quality of its products and production," said Niklas Swanstrom, director of the Institute for Security and Development Policy.

"China is a market that really values premium brands, and it seems to put a real value on premium Italian brands. Alfa Romeos have always been built in Italy."

"China firmly opposes it. It is a typical unilateral and protectionist practice," said Chen Fuli, director-general of the ministry's Department of Treaty and Law.

"Buying, using and showing off Chinese products have become a fashion," Zhang says.