New car from the Chinese electric car manufacturer BYD.Image: Keystone
April 27, 2026, 07:28April 27, 2026, 07:28
Brussels wants to strengthen European industry with a new law. China has sharply criticized the EU’s plans.
The draft law contains serious obstacles to investment and institutional discrimination in the four strategic growth sectors of batteries, electric cars, photovoltaic systems and important raw materials, said the Ministry of Commerce in Beijing.
According to its own information, the authority communicated its concerns about the draft to support the industry (Industrial Accelerator Act, IAA) and recommendations to the EU on April 24th. If the EU does not take China’s proposals into account, pushes forward the passage of the law and thereby harms the interests of Chinese companies, Beijing will be forced to take countermeasures, it said.
What the EU plans to do with the law
According to information from Brussels, the 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.
Stephane Sejourne, Vice President of the EU Commission speaks at the IAA, March 4, 2026.Image: EPA
China, as a major competitor to EU industry, would be affected by foreign investments. Because high levels of foreign direct investment would have to be approved in the future. This is intended to protect companies in the areas of batteries, electric vehicles, solar cells and critical raw materials from being taken over by non-EU countries.
What China demands
China’s Ministry of Commerce pointed out three problems with the IAA. On the one hand, it was said that the law violated some agreements. On the other hand, Chinese investors would be discriminated against, which would have a serious impact on the investment prospects of Chinese companies in Europe. Thirdly, the law will halt the EU’s green transformation process and impair fair competition, it said.
Beijing recommended removing any requirements for foreign investors, local shares in value creation or the transfer of intellectual property from the draft. (nil/sda/dpa)