China has launched a formal diplomatic offensive against the European Union’s Industrial Acceleration Act, warning that the bloc’s strategy to boost domestic manufacturing could violate World Trade Organisation rules and constitute institutional discrimination against foreign investors — and signalling that retaliatory countermeasures may follow if dialogue fails.
China’s Ministry of Commerce delivered formal feedback to the European Commission on Friday and went public with its criticism on Monday, with a spokesperson arguing that the Act imposes numerous restrictive requirements on foreign investment. At the heart of Beijing’s objection is the EU’s use of preferential “EU origin” tags in public procurement and public support policies — conditions the Chinese government says amount to investment barriers and discriminatory treatment of non-European companies.
The spokesperson said China is willing to engage in dialogue with the EU to mitigate the policy’s impact, but made clear that if those discussions fail to produce results, Beijing is prepared to take countermeasures to “firmly safeguard” its business interests. The European Commission’s response was measured. Spokesperson Olof Gill said the bloc’s proposals are “carefully calibrated to achieve certain economic wider goals for our citizens” and that the Commission remains open to engagement with global partners.
The Industrial Acceleration Act, launched by the European Commission in March, targets three strategic sectors: clean technologies, car manufacturers and energy-intensive industries including aluminium, steel and cement. It includes domestic content thresholds of 70% EU-content for electric vehicles, 25% for aluminium and 25% for cement. The measures are designed to direct public procurement and state support toward European producers, reducing industrial dependencies and strengthening economic sovereignty.
European Commissioner for Industry Stéphane Séjourné framed the initiative as a direct response to a mounting employment crisis. More than 200,000 European jobs have been lost in energy-intensive industries and the automotive sector since 2024, with projections pointing to 600,000 further losses in car-making alone this decade. The proposal must still be approved by the European Parliament and the European Council before it can enter into force.
