As EU countries debate the European Commission’s proposal, Beijing is urging national governments to abandon the planned law. Otherwise, China says it will take countermeasures.
China has called on EU member states to revise the bloc’s proposed “Made in Europe” legislation, according to Suo Peng, trade and economy minister at China’s mission in Brussels.
ADVERTISEMENT
ADVERTISEMENT
The European Union is currently debating the draft, which was unveiled by the European Commission in March and aims to impose stricter conditions on foreign companies seeking access to EU public procurement and investment opportunities.
The proposal — widely interpreted as targeting Chinese firms — has already drawn a warning from Beijing. Earlier this week, China’s commerce ministry said it would consider retaliatory measures if the EU proceeds without significant changes.
“Chinese embassies in EU member states have conveyed China’s comments and suggestions to the governments of their hosting countries,” Peng told journalists in Brussels.
He added that if the EU “insists on this punishment and treats China’s enterprises in a discriminatory manner,” Beijing would be forced to respond with countermeasures.
Public procurement rules and investment limits
The so-called Industrial Accelerator Act would, if adopted by EU governments and the European Parliament, prioritise European-made products in public procurement in sectors considered strategic, including automotive, green technologies, and energy-intensive industries such as aluminium and steel.
It would also place conditions on foreign direct investment exceeding €100 million in areas such as batteries, electric vehicles, solar panels and critical raw materials.
Companies from countries with more than 40% global market share in a given sector could be required to form joint ventures with European partners and transfer technology. At least half of jobs in such projects would also need to go to EU workers.
China has criticised the measures as discriminatory, with Peng accusing the EU of double standards on technology transfer rules. He pointed to a 2018 joint statement with the United States and Japan opposing forced technology transfers.
Divisions within the EU
EU member states remain split over the proposal. France is pushing for stricter local content requirements, while Germany and others are calling for a broader approach that includes cooperation with like-minded partners.
Some countries have also warned that the rules could increase costs and limit access to innovation.
The proposal includes a reciprocity principle in public procurement, meaning the EU would only open its market to countries that grant similar access to European firms.
China, which does not currently have such an agreement with the EU, says it is open to a bilateral deal on government procurement. Peng urged Brussels to respond “as soon as possible”.
Otherwise, he warned, the plan “will seriously damage the actual interests of Chinese and European companies.”