(China, 27th) — In response to comments on the EU's “Industrial Accelerator Act,” China's Ministry of Commerce has urged the EU to remove discriminatory provisions from the bill and stated that if the EU ignores China's suggestions, countermeasures will be taken.
According to a notice on the official website of China's Ministry of Commerce, a spokesperson answered questions from reporters on Monday (April 27), saying that the Ministry formally submitted comments on the EU's “Industrial Accelerator Act” to the European Commission last Friday (24th), expressing China's official position and serious concerns.
The spokesperson pointed out that the bill imposes numerous restrictive requirements on foreign investment in four emerging strategic industries—batteries, electric vehicles, photovoltaics, and key raw materials—and sets “EU origin” exclusive clauses in public procurement and public support policies, constituting serious investment barriers and systemic discrimination.
China's comments pointed out that the bill has the following main problems: First, it is suspected of violating fundamental principles such as most-favored-nation treatment and national treatment, as well as several agreement rules including the 1994 General Agreement on Tariffs and Trade (GATT), Agreement on Trade-Related Investment Measures (TRIMs), Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Agreement on Subsidies and Countervailing Measures.
China's comments pointed out that the bill has the following main problems: First, it is suspected of violating fundamental principles such as most-favored-nation treatment and national treatment, as well as several agreement rules including the 1994 General Agreement on Tariffs and Trade (GATT), Agreement on Trade-Related Investment Measures (TRIMs), Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Agreement on Subsidies and Countervailing Measures.
Second, Chinese investors will suffer discrimination, which violates the basic market economy principles of commercial voluntariness and fair competition, further contravening the important consensus between Chinese and EU leaders on properly handling frictions and differences, and seriously affecting expectations of Chinese companies investing in Europe. Third, it will drag down the EU's green transition progress, undermine fair competition in the EU market, and bring new challenges to multilateral trade rules.
The spokesperson stated that in its comments, China suggested that the EU delete discriminatory requirements for foreign investors, local content requirements, compulsory intellectual property and technology transfer requirements, public procurement restriction policies, and so on. China hopes the EU will highly value and seriously consider adopting these comments, strictly abide by WTO rules, and avoid discriminatory restrictive measures.
The spokesperson made clear that China will closely monitor the legislative process and is willing to engage in dialogues and communications with the EU on this matter. If the EU ignores China’s recommendations, insists on enacting the law, and thus harms the interests of Chinese enterprises, China will have to take countermeasures and resolutely safeguard the legitimate rights and interests of Chinese companies.
The spokesperson stated that in its comments, China suggested that the EU delete discriminatory requirements for foreign investors, local content requirements, compulsory intellectual property and technology transfer requirements, public procurement restriction policies, and so on. China hopes the EU will highly value and seriously consider adopting these comments, strictly abide by WTO rules, and avoid discriminatory restrictive measures.
The spokesperson made clear that China will closely monitor the legislative process and is willing to engage in dialogues and communications with the EU on this matter. If the EU ignores China’s recommendations, insists on enacting the law, and thus harms the interests of Chinese enterprises, China will have to take countermeasures and resolutely safeguard the legitimate rights and interests of Chinese companies.
The European Commission published the “Industrial Accelerator Act” on March 4 this year, proposing the introduction of “EU manufacturing” and similar requirements into public procurement and public support programs, aiming to enhance EU’s internal value creation capacity and consolidate the EU industrial base.
According to the news release issued by the European Commission that day, the “Industrial Accelerator Act” sets a goal to increase the proportion of manufacturing in the EU's GDP to 20% by 2035. Data shows that manufacturing accounted for 14.3% of the EU's GDP in 2024.
The release stated that the bill applies to strategic sectors such as steel, cement, aluminum, and automobiles, and may be expanded to other energy-intensive sectors such as chemicals when appropriate. The bill also sets additional conditions for major investments exceeding 100 million euros in EU strategic industries: for example, if a single third country’s global capacity share in the relevant field exceeds 40%, the investment project must include technology and knowledge transfer, comply with local requirements, and ensure that at least 50% of the employees recruited are EU citizens.
Since its inception, the “Industrial Accelerator Act” has sparked controversy both inside and outside the EU. Related measures originally scheduled for release last year were postponed multiple times due to differing views among member states. The US, UK, and others have also expressed concerns, arguing that reinforcing “EU-made” and raising localization thresholds in public procurement may increase business costs and create new trade barriers.