China warns EU over 'Made in Europe' industrial protection plan
China's commerce ministry has formally criticised the European Union's "Industrial Accelerator Act", describing the legislation as systemic discrimination and threatening retaliatory action if the rules are enacted.
China has formally criticised the European Union's proposed "Made in Europe" rules, describing the legislation as systemic discrimination against Chinese enterprises. Beijing has vowed to implement countermeasures if the rules are enacted, specifically targeting provisions that require local content thresholds in sectors such as cars, green technology, and steel, as well as requirements for foreign firms to partner with European entities and transfer technological know-how.
The Chinese commerce ministry submitted formal comments to the European Commission on Friday regarding the proposal, expressing serious concerns over the act. The ministry warned that if the EU presses ahead with the legislation and thereby harms the interests of Chinese companies, China will have no choice but to take countermeasures to firmly safeguard the legitimate rights and interests of its enterprises.
The EU proposal, formally known as the Industrial Accelerator Act, was unveiled in March and has been delayed for months due to internal wrangling. The rules would obligate companies seeking public funds in strategic sectors to meet minimum thresholds for EU-made parts, implicitly targeting Chinese makers of batteries and electric vehicles by requiring foreign firms to partner with European firms and pass on technological know-how when setting up shop in the bloc.
Beijing slammed on Monday an EU plan aimed to bolster the bloc's industries against fierce competition from China. The Chinese Chamber of Commerce to the EU stated that the plan marks a shift towards protectionism that will negatively affect trade cooperation between the EU and China.
Conversely, European businesses in many of the sectors concerned by the proposal have long lamented they face unfair competition from heavily subsidised Chinese rivals. The proposal aims to bolster the bloc's industries, reduce industrial decline, and prevent hundreds of thousands of job losses within the EU.
The specific timing and nature of the countermeasures China intends to take remain undefined, pending the final adoption of the EU legislation. The extent to which the Industrial Accelerator Act will be delayed or modified following China's objections is currently unknown.
