China sharply criticizes EU Industrial Accelerator Act

China Feels Discriminated Against China Sharply Criticizes EU Plans and Threatens Countermeasures

2026-04-29 Source: dpa 2 min Reading Time

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China has sharply criticized the EU's plans to strengthen the industry with a new law. The draft law contains serious obstacles, according to the ...

Behind these walls of the Chinese Ministry of Commerce in Beijing, people are currently making rather angry faces. The reason for this is that new EU plans to strengthen and protect European industry are causing the Chinese to be furious ...(Image: Xi Quang) — Behind these walls of the Chinese Ministry of Commerce in Beijing, people are currently making rather angry faces. The reason for this is that new EU plans to strengthen and protect European industry are causing the Chinese to be furious ...
(Image: Xi Quang)

According to Brussels, the so-called Industrial Accelerator Act (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. China is anything but enthusiastic about the EU's plans, which are intended to help strengthen the industry through a new law. According to the Chinese Ministry of Commerce, the European intentions are slowing down investment and creating institutional discrimination in the four strategic growth sectors of batteries, electric cars, photovoltaic systems and important raw materials. According to its own information, the authority recently sent the EU its concerns about the draft to support the industry as well as various recommendations. It also stated that if the EU does not take China's proposals into account and pushes ahead with the adoption of the law, thereby harming the interests of Chinese companies, Beijing will be forced to take appropriate countermeasures.

Opposites Don't Always Attract ...

China is known to be a major competitor of EU industry and would be negatively affected in terms of foreign investment if the IAA comes into force. This is because high levels of foreign direct investment will then have to be approved in future. This is primarily intended to protect companies in the areas of batteries, electric vehicles, solar cells and critical raw materials from being taken over by non-EU players. So that is the attitude in Brussels on the subject.

China's Ministry of Commerce in turn pointed out three problems with the IAA. Firstly, the law violates several agreements; secondly, as already mentioned, it discriminates against Chinese investors, which would have a serious impact on the investment prospects of the companies concerned in Europe. And thirdly, the law will halt the EU's green transformation process and impair fair competition. For Beijing, it would be a concession if any requirements for foreign investors, local shares in value creation or the transfer of intellectual property were removed from the draft.

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