China Vows Retaliation Over EU's Industrial Accelerator Act

(MENAFN) Beijing fired a stark warning at Brussels on Monday, declaring that the European Union's newly introduced Industrial Accelerator Act (IAA) erects "serious" investment barriers and amounts to "institutional discrimination" against Chinese enterprises — and vowing swift retaliation if the legislation moves forward unchanged.

A spokesperson for the Chinese Commerce Ministry outlined Beijing's core objections, asserting that the IAA imposes sweeping restrictions on foreign investment across four strategic industries — batteries, electric vehicles, photovoltaics, and critical raw materials — while embedding exclusionary EU-origin clauses into public procurement and state support frameworks, state-run media reported.

Introduced in March, the IAA is designed to bolster the EU's industrial base and reduce dependence on non-European suppliers in critical sectors, framing the move as a response to what Brussels characterizes as growing "unfair global competition."

China has already lodged a formal objection with the European Commission, submitting comments that articulate its "position and serious concerns" over the act. In those submissions, Beijing contended that the legislation discriminates against Chinese investors, risks derailing the EU's green transition, and distorts fair competition within the single market.

China called on the EU to strip the act of what it described as discriminatory provisions — including local content requirements, mandatory intellectual property and technology transfer clauses, and public procurement restrictions targeting foreign investors.

While the Chinese spokesperson indicated a willingness to resolve the dispute through dialogue, the warning that followed left little ambiguity: "However, if the EU disregards China's comments and pushes ahead with enacting the legislation, causing damage to Chinese companies' interests, China will take countermeasures to firmly safeguard the legitimate rights and interests of Chinese enterprises."

MENAFN27042026000045017169ID1111035338