Planned EU industry law China threatens countermeasures
Brussels wants to strengthen European industry with a new law. China has sharply criticized the EU's plans.
27.04.2026, 05:29
27.04.2026, 07:42
SDA
The draft law contains serious barriers to investment and institutional discrimination in the four strategic growth sectors of batteries, electric cars, photovoltaic systems and important raw materials, according to the Ministry of Commerce in Beijing.
According to the ministry, it had submitted its concerns about the draft Industrial Accelerator Act (IAA) and recommendations to the EU on April 24. If the EU does not take China's proposals into account, pushes ahead with the adoption of the law and thereby harms the interests of Chinese companies, Beijing will be forced to take countermeasures, it said.
What the EU intends to do with the law
According to Brussels, the IAA is intended to strengthen the EU in strategic industrial sectors, secure and create jobs there and make "Made in Europe" a condition for public contracts in these sectors.
As a major competitor to EU industry, China would be affected in terms of foreign investment. This is because high levels of foreign direct investment would have to be approved in future. This is intended to protect companies in the areas of batteries, electric vehicles, solar cells and critical raw materials from being taken over by non-EU countries.
What China is demanding
China's Ministry of Commerce pointed out three problems with the IAA. Firstly, the law violates a number of agreements. Secondly, Chinese investors would be discriminated against, which would have a serious impact on the investment prospects of Chinese companies in Europe. Thirdly, the law would halt the EU's green transformation process and impair fair competition, it said.
Beijing recommended that any requirements for foreign investors, local shares in value creation or the transfer of intellectual property be removed from the draft.
