Post by : Shakul

Beijing — China has expressed “grave concern” over the European Union’s proposed Industrial Accelerator Act (IAA), warning that the legislation could create new barriers for foreign companies and disrupt global trade.

China’s Ministry of Commerce said the proposed law would restrict foreign investment in several key sectors, including batteries, electric vehicles, solar photovoltaic technology and critical raw materials. A ministry spokesperson stated that Beijing would closely monitor the legislative process and assess its potential impact on Chinese companies operating in Europe.

The Industrial Accelerator Act, unveiled by the European Union earlier this week, aims to strengthen Europe’s domestic manufacturing capacity in strategic green industries. The proposal includes rules that could prioritise “Made in EU” requirements and low-carbon standards when governments award public contracts or provide subsidies for industries such as aluminium, cement, steel, wind turbines and electric vehicles.

Chinese officials argue that using climate and industrial development goals to justify new restrictions could amount to protectionism. According to Beijing, such measures risk undermining international trade rules, weakening fair competition and destabilising global supply chains.

The European Union has been working to reduce reliance on foreign technology and materials as it accelerates its transition to a low-carbon economy. However, China remains a dominant global supplier in sectors such as solar panels, battery components and rare earth materials, making the proposed rules particularly sensitive for Chinese exporters.

Analysts say the debate around the Industrial Accelerator Act reflects growing economic tensions between major global powers as countries compete to secure leadership in emerging green technologies. If implemented, the legislation could reshape international trade dynamics in industries critical to the global energy transition.

China has said it will continue to evaluate the policy and take necessary steps to protect the legitimate rights and interests of Chinese companies operating abroad.

#world news #Global News #Asia News