Neelie Kroes, the European Union competition commissioner, has warned China against using national security concerns as an excuse for protectionism.

But Ms Kroes added that it was too early to say whether China would abuse the national security clause in its new anti-monopoly law, which takes effect next year.

"We will defend a very restricted implementation and interpretation of that point on national security," Kroes told a news conference this morning

"We will discuss the consequences if you are not quite consistent and straightforward" [in using the national security protections] she added.

Ms Kroes said she had raised her concerns in talks in Beijing with Chinese officials, adding that the EC is keen to know what kind of penalties will be levied against those who violate the new law.

She also praised China for adopting the anti-monopoly law last week, calling it a historic piece of legislation that would benefit the country's economy and people.

The law, first proposed 13 years ago and which comes into effect next August, requires purchases of Chinese companies by foreign firms to go through a national security check.

Progress on the law had been stalled by controversy over how to carry out enforcement, given the prevalence of state-owned monopolies in China.

Beijing officials have said the legislation would not discriminate between domestic and foreign companies. But specific industries subject to security reviews were not named and many sectors remain off-limits altogether to foreign buyers.

The Chinese Government last year released a list of strategic sectors in which state monopolies would continue to be permitted. They include military-related manufacturing, power production and grids, petroleum, gas and petrochemicals, telecom manufacturing, coal, and civil aviation.

The three-day visit to China was Ms Kroes' first since she took over as EU competition commissioner.

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