The trade row between China and the European Union looks set to get uglier, as the Beijing government says it still has cards to play in the dispute after the EU said it would impose duties on imports of Chinese solar panels.

The EU decision infuriated Beijing, although Brussels tried to lessen the impact by reducing the rate. China responded with an anti-dumping and anti-subsidy probe into imports of wine from the EU.

"We have set the table for talks, [yet] there are still plenty of cards we can play," ran an article in the People's Daily, the official organ of the ruling Communist Party. "China does not want a trade war, but trade protectionism cannot but bring about a counter-attack."

Both sides say they want to resolve the row through talks.

The report accuses EU trade commissioner Karel De Gucht of "stirring up trouble" by pushing through the duties despite objections from EU states. It also says Europe needs to understand that it is not the power it once was.

“Times change and power rises and falls. Still this has not changed the deep-rooted, haughty attitudes of certain Europeans,” it says.