China warns EU over “Made in Europe” industrial policy plan

China has strongly criticised a new European Union industrial policy proposal, warning that it will take countermeasures if the plan is implemented in its current form.

The European Union introduced the initiative in March under the label “Made in Europe,” aiming to strengthen domestic industries by prioritising European-made components in public procurement. The policy targets key strategic sectors such as automobiles, green technology, and steel.

Under the proposal, companies seeking access to EU public funds would be required to meet minimum thresholds for locally produced parts. The measure is part of a broader strategy by the EU to boost industrial competitiveness, address economic decline, and protect jobs amid rising global competition.

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Beijing’s commerce ministry said it had formally submitted concerns to the European Commission, describing the plan as “systemic discrimination” against Chinese firms. China argued that the policy unfairly targets its companies operating in Europe.

The ministry warned that if the EU proceeds with the legislation and harms Chinese business interests, China will respond with appropriate countermeasures to protect its enterprises.

The proposal, officially known as the “Industrial Accelerator Act,” also includes provisions that would require foreign companies—particularly in sectors such as electric vehicles and battery manufacturing—to form partnerships with European firms and share certain technological expertise when establishing operations in the bloc.

European industry stakeholders have long argued that Chinese companies benefit from significant state subsidies, creating what they see as unfair competition in global markets.

The Chinese Chamber of Commerce to the European Union has also criticised the plan, stating that it represents a shift towards protectionism that could negatively impact trade relations between China and the EU.

The development adds further tension to already strained economic relations between Brussels and Beijing, with both sides signalling a tougher stance on industrial policy and trade regulation.