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: April 1, 2026
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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.
China Voices Grave Concern Over EU Industrial Accelerator Act and New Trade Barriers
China's Response to the EU Industrial Accelerator Act
China Expresses Grave Concern
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.
Monitoring and Assessment of the Legislation
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.
Details of the Industrial Accelerator Act
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.
China's Critique of EU Trade Barriers
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)
Key Takeaways
- •The EU’s IAA proposes ownership caps, joint‑venture mandates, and ‘Made in EU’ rules for investments over €100 million in batteries, EVs, solar PV and critical raw materials—effectively targeting major non‑EU investors, notably China (dechert.com).
- •China decried the act as protectionist misuse of green transition goals, and said it would monitor and respond to defend Chinese companies’ legal rights (reutersconnect.com).
- •The act reflects a major shift in EU industrial strategy aiming to boost domestic manufacturing—from 14.3% to 20% of GDP by 2035—and to reduce dependency on China in critical supply chains (theguardian.com).
References
- The EU Industrial Accelerator Act: A New FDI Control Regime for Strategic Sectors | Dechert LLP
- China warns EU against 'protectionism' as bloc moves to phase out foreign high-risk tech | Reuters Connect
- European Commission proposes ‘Buy EU’ plan to compete against China | European Union | The Guardian
Frequently Asked Questions about China expresses 'grave concern' over EU's proposed Industrial Accelerator Act
1What is the EU's proposed Industrial Accelerator Act?
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.
2Why is China concerned about the Industrial Accelerator Act?
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.
3Which industries are affected by the EU Industrial Accelerator Act?
Affected industries include batteries, electric vehicles, solar photovoltaics, critical raw materials, aluminium, cement, steel, and technologies like wind turbines and electrolysers.
4How does China plan to respond to the EU legislation?
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.
5What are the potential consequences of the EU's new trade barriers?
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.
