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China's auto body says it strongly opposes EU's Industrial Accelerator Act - Finance news and analysis from Global Banking & Finance Review
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China's auto body says it strongly opposes EU's Industrial Accelerator Act

Published by Global Banking & Finance Review

Posted on May 22, 2026

1 min read

· Last updated: May 22, 2026

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China's Auto Industry Voices Strong Opposition to EU's Industrial Accelerator Act

China's Response to the EU's Industrial Accelerator Act

Industry Body Expresses Concerns

BEIJING, May 22 (Reuters) - China's auto industry body on Friday expressed "serious concern, strong dissatisfaction and firm opposition" to the EU's Industrial Accelerator Act (IAA), criticising it of discriminatory provisions targeting foreign firms, including in EV and batteries.

Call for Careful Assessment

The China Association of Automobile Manufacturers (CAAM) "calls on the European side to carefully assess the impact of relevant provisions on China-EU industrial cooperation," according to a statement on its social media account.

Status of the Act

The European Commission proposed the act in March but it has not yet been adopted and remains under negotiation.

Reporting Credits

(Reporting by Ethan Wang, Shi Bu and Ryan Woo; Editing by Toby Chopra)

Key Takeaways

  • The EU’s IAA proposal (published March 4, 2026) aims to boost EU manufacturing to 20% of GDP by 2035 through ‘Made in EU’ and low‑carbon public procurement preferences, streamlined permitting, industrial acceleration zones, and stricter FDI rules (europarl.europa.eu)
  • China’s CAAM criticised the IAA’s provisions—especially on EVs and batteries—as discriminatory and called on the EU to reassess their impact on industrial cooperation (agenceurope.eu)
  • The IAA is still under negotiation in the European Parliament and Council; its final form may change, offering scope for engagement and potential revision of contentious provisions (sidley.com)

References

Frequently Asked Questions

What is the EU's Industrial Accelerator Act?
The EU's Industrial Accelerator Act is a proposed regulation aimed at boosting the EU's industrial capabilities, currently under negotiation and not yet adopted.
Why does China's auto industry oppose the EU's Industrial Accelerator Act?
China's auto industry opposes the Act due to its perceived discriminatory provisions targeting foreign firms, especially those involved in EVs and batteries.
Who expressed opposition to the EU's Industrial Accelerator Act?
The China Association of Automobile Manufacturers (CAAM) publicly voiced strong dissatisfaction and opposition to the EU's Act.
What impact could the EU's Act have on China-EU industrial cooperation?
China's auto body warns that the Act's provisions could negatively impact industrial cooperation between China and the EU.
Has the EU's Industrial Accelerator Act been adopted?
No, the Act was proposed in March and remains under negotiation, not yet adopted by the European Commission.

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