(Bloomberg) -- Malaysian Prime Minister Mahathir Mohamad said the country could switch to China to source its fighter jets instead of the European Union, as retaliation against the EU for its curbs on palm oil.

"If they keep on taking action against us, we will think of buying airplanes from China or any other country," he told reporters Sunday, according to Malaysian state news agency Bernama. “If we have to buy fighter jets, we will consider these China-made jets."

Palm oil has emerged as a flash-point in a potential trade spat between the European Union and top producers Indonesia and Malaysia, which together account for about 85 percent of global supply. The European Commission last week restricted the types of biofuels from the vegetable oil that may be counted toward its renewable-energy goals. The proposed EU curbs have weighed on benchmark palm prices, which have fallen for five quarters in a row.

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