Overview
- China's commerce ministry, after filing formal comments on April 24, warned Monday it will take counter-measures if the EU adopts the plan without addressing its concerns.
- The proposal, branded an industrial acceleration law, would require firms that take public funds in key sectors to use a set share of critical components made in Europe, according to Commission vice president Stéphane Séjourné.
- Targeted areas include autos, clean-energy technologies such as solar panels, batteries, heat pumps and nuclear, plus heavy industry, with China arguing the plan discriminates against its investors.
- Beijing says the draft also restricts foreign investment in four emerging sectors—batteries, electric vehicles, photovoltaics and critical raw materials—and it has pledged to follow the EU legislative process and stay open to talks.
- The bill, unveiled March 4 and still awaiting approval by EU governments and the European Parliament, could redirect public procurement and supply chains toward EU suppliers and tighten EU–China economic ties into a sharper trade standoff.