China has warned it will take retaliatory measures if the European Union moves forward with proposed “Made in Europe” rules designed to protect strategic industries from foreign competition, escalating trade tensions between Brussels and Beijing.(France24)
In a statement issued Monday, China’s Ministry of Commerce said the bloc’s proposed legislation would discriminate against Chinese companies and damage their commercial interests if adopted in its current form.
“If the EU presses ahead with the legislation and harms the interests of Chinese companies, China will have no choice but to take countermeasures,” the ministry said.
EU Pushes for Greater Industrial Self-Reliance
The draft legislation—formally titled the Industrial Accelerator Act—would require companies seeking access to EU public funding in sectors such as automotive, steel, batteries, and green technology to meet minimum thresholds for locally sourced European components.
The initiative forms part of the EU’s broader industrial strategy aimed at reviving domestic manufacturing, reducing dependence on foreign supply chains, and countering what European policymakers view as unfair competition from heavily subsidised overseas producers.
European manufacturers have long argued that Chinese rivals benefit from extensive state support, allowing them to undercut EU producers in strategically important sectors.
Chinese Firms Seen as Primary Target
Although the proposal does not explicitly name China, market participants widely interpret the measures as targeting Chinese electric vehicle, battery, and clean-tech manufacturers expanding into Europe.
In particular, the draft rules would reportedly require certain foreign companies to partner with European firms and transfer technological know-how when establishing operations within the bloc.
Beijing has characterised the proposal as a protectionist measure that undermines fair trade principles.
China’s Ministry of Commerce said it had submitted formal objections to the European Commission last week, describing the legislation as “systemic discrimination” against Chinese enterprises.
Rising EU-China Trade Frictions
The warning adds to a growing list of trade disputes between Brussels and Beijing as the EU adopts a more defensive industrial policy.
The European Commission has increasingly embraced measures aimed at “de-risking” from China, including foreign subsidy investigations, anti-subsidy probes into Chinese electric vehicles, and tighter screening of foreign investment in sensitive sectors.
Business groups representing Chinese companies in Europe have criticised the Industrial Accelerator Act as a shift toward economic nationalism that could undermine bilateral trade cooperation.
Strategic Stakes for Brussels
The “Made in Europe” initiative has become a cornerstone of the EU’s industrial competitiveness agenda amid concerns over deindustrialisation and job losses across the bloc.
Supporters argue the rules are necessary to preserve strategic manufacturing capacity and ensure Europe remains competitive in future-facing sectors such as clean energy and electric mobility.
However, the proposal risks provoking further retaliation from Beijing at a time when EU-China economic relations are already under strain.
