Key facts
- China's Ministry of Commerce has lodged a formal complaint with the European Commission over the proposed Industrial Accelerator Act.
- The act targets strategic sectors including batteries, electric vehicles, photovoltaics, and critical raw materials.
- China argues the legislation imposes discriminatory requirements, local content rules, and restrictions on public procurement.
- Chinese companies operating in Europe plan to increase investment over the next three years, according to a report.
- The report highlights policy uncertainty in the EU as the primary concern for Chinese businesses.
China has formally complained to the European Commission about the EU's proposed Industrial Accelerator Act, warning that the legislation would create "serious investment barriers and institutional discrimination" against Chinese companies. The Ministry of Commerce submitted its official comments on Friday, expressing concerns that the draft law imposes restrictive requirements on foreign investment in strategic sectors like batteries, electric vehicles, photovoltaics, and critical raw materials.
The act also introduces "EU origin" exclusivity clauses in public procurement and support policies. China has called on the EU to remove these discriminatory requirements, along with mandatory intellectual property transfers and restrictions on public procurement. A spokesperson stated that China will closely monitor the legislative process and engage in dialogue, but cautioned that countermeasures would be taken if the EU ignores China's suggestions and proceeds with the legislation in a way that harms Chinese interests.
Separately, a report released in Luxembourg by the China Chamber of Commerce to the EU, China Economic Information Service Shanghai Headquarters, and Xinhua News Agency's Europe Regional Bureau indicated that nearly 80 percent of about 100 surveyed Chinese companies in Europe plan to expand investment over the next three years. These companies view Europe as a key destination due to strategic fit and opportunities in green and digital industries, advancing an "In Europe, for Europe" strategy by creating local jobs and integrating into regional supply chains. However, the report highlighted that policy uncertainty in the EU has become the biggest concern for Chinese firms, outweighing other challenges.
Reports suggest the EU is planning to tighten foreign investment rules to ensure Chinese companies do not gain an advantage from the bloc's open market without benefiting local workers or sharing technology. An expert urged the EU to avoid artificial restrictions, noting that such measures would add uncertainty to the EU's own economy and that cooperation should focus on complementarity rather than protectionism.