Key facts
- Industry officials and experts urged EU lawmakers to support the European Commission's Industrial Accelerator Act (IAA).
- The IAA is designed to counter a surge in Chinese imports that threatens European businesses in sectors like EVs, steel, and wind turbines.
- The proposal includes limiting Chinese investments in strategic sectors and setting 'Made-in-EU' requirements for public procurement.
- Germany's position has softened due to the automotive industry's challenges with Chinese competition.
- The EU has a substantial trade deficit with China, with imports of vehicles and automotive parts from China increasing significantly.
European industry leaders are rallying behind the European Commission's proposed Industrial Accelerator Act (IAA) as a crucial measure to combat the growing threat posed by Chinese imports. During a public hearing at the European Parliament, industry officials and experts warned lawmakers that Beijing's export dominance is jeopardizing European businesses, particularly in strategic sectors like electric vehicles, batteries, steel, chemicals, and wind turbines.
Unlike the first wave of Chinese competition that impacted lower-tech manufacturing after China joined the WTO in 2001, the current wave threatens industries considered vital for Europe's future economic and technological independence. The IAA aims to mitigate this pressure by restricting Chinese investments in key areas such as EVs and raw materials, and by implementing 'Made-in-EU' requirements for public procurement, potentially excluding Chinese suppliers.
Green MEP Anna Cavazzini described the IAA as a "cornerstone" of the EU's strategy against China's aggressive trade policies, emphasizing the need to strengthen the Commission's proposal. Initially hesitant due to concerns about potential retaliation from China, Germany's perspective has shifted as its own automotive industry faces significant challenges. Sebastian Schaffer, Volkswagen's top lobbyist, stated that companies receiving European taxpayer funds should prioritize saving European jobs, referencing the automaker's potential job cuts and factory closures.
President Ursula von der Leyen acknowledged China as a key economic partner but stressed that lowering reliance is necessary and that the EU cannot accept permanent trade imbalances, often fueled by Chinese subsidies. She indicated that while dialogue with China is important, the EU must be prepared to utilize its policy instruments when dialogue proves insufficient. Experts like Sander Tordoir of the Centre for European Reform believe the IAA may be the EU's primary tool to address this competitive threat.