Finance
China expresses 'grave concern' over EU's proposed industrial accelerator act
Published by Global Banking & Finance Review®
Posted on March 6, 2026
1 min readLast updated: March 6, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 6, 2026
1 min readLast updated: March 6, 2026
China’s commerce ministry voiced strong opposition to the EU’s proposed Industrial Accelerator Act, criticizing it as protectionist and pledging to safeguard Chinese firms’ interests. The IAA targets foreign investments in green tech sectors, imposing stringent conditions that mainly affect China.
BEIJING, March 6 (Reuters) - China commerce ministry on Friday expressed "grave concern" over the EU's proposed Industrial Accelerator Act (IAA) which imposes restrictions on foreign investment in batteries, EVs, solar PV and critical raw materials, according to a statement.
A ministry spokesperson said China will closely monitor the legislation process of the act and assess its impact and China and Beijing will resolutely defend Chinese firms' legitimate rights and interests.
The intensely debated IAA, unveiled Wednesday, will set low-carbon and 'Made in EU' requirements for public procurement of, or subsidies for, making aluminium, cement and steel, and technologies including wind turbines, electrolysers or electric vehicles.
The Chinese spokesperson said the bloc's use of industrial development and green transition goals to justify new barriers amounts to protectionism that will backfire, undermine global trade rules and fair competition, and disrupt supply‑chain stability.
(Reporting by Shi Bu and Ryan Woo; Editing by Toby Chopra)
The Industrial Accelerator Act is EU legislation that imposes restrictions on foreign investment in sectors like batteries, EVs, solar PV, and raw materials, with new requirements for public procurement and subsidies.
China's commerce ministry expressed grave concern, arguing the act imposes protectionist barriers that could disrupt global trade rules and supply chains, impacting Chinese firms' rights and interests.
Affected industries include batteries, electric vehicles, solar photovoltaics, critical raw materials, aluminium, cement, steel, and technologies like wind turbines and electrolysers.
China will closely monitor the EU legislation process, assess its impact, and resolutely defend the legitimate rights and interests of Chinese companies affected by the act.
China warns that the EU's use of green transition goals to justify new barriers may lead to increased protectionism, undermine global trade rules, and disrupt supply chain stability.
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