China has warned the European Union it may take “countermeasures” if Chinese companies are negatively affected by the proposed Industrial Accelerator Act, also referred to as the EU’s “Made in Europe” law, which is designed to strengthen European manufacturing and reduce reliance on cheaper imports.
The law “runs counter to the important consensus of Chinese and European leaders on properly handling frictions and differences, seriously affecting Chinese enterprises’ expectations for investment in Europe”, China’s commerce ministry said.
China “is willing to conduct dialogue and communication with the European side on this matter”, it said. But if the EU “ignores China’s suggestions . . . China will have no choice but to take countermeasures”, it warned.
The proposed legislation targets strategic sectors including batteries, solar panels and nuclear energy, as the EU seeks to increase manufacturing’s share of GDP to 20 per cent by 2035.
Key developments include:
- Foreign investments above €100mn in key sectors could face stricter EU conditions.
- Companies may be required to use at least 50 per cent EU-based workers.
- The proposal includes local manufacturing and technology-transfer requirements.
- China’s Ministry of Commerce said the measures could violate WTO principles and distort fair competition.
The European Commission said the proposals are intended to protect economic and industrial interests while maintaining engagement with international partners..
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