China's Ministry of Commerce has responded to reported European Union plans to block funding for projects using Chinese inverters by warning that the country will take necessary measures to safeguard the legitimate rights and interests of its companies.

In response to the reported comments by EU officials, the Ministry of Commerce stated that the bloc had, without providing any supporting evidence, labeled China a "high-risk country" for the first time.

Inverters are devices that convert direct current into alternating current, enabling electricity transmission and efficient power management in solar, wind and other renewable energy generation systems.

"This stigmatizes China and constitutes unfair and discriminatory treatment toward Chinese products," a commerce ministry statement read.

The ministry statement added that the EU's move would weaken mutual trust between China and the bloc, damage bilateral economic and trade cooperation, and undermine the stability of industrial and supply chains in Europe and beyond, raising the risk of "decoupling" and supply chain disruptions.