China’s Ministry of Commerce has said that the European Union’s proposed Industrial Accelerator Act (IAA) amounts to “institutional discrimination” and creates serious barriers to foreign investment, particularly for Chinese firms.
In a statement issued on Monday, a ministry spokesperson said the legislation introduces restrictive conditions for foreign investors across four strategic sectors batteries, electric vehicles, photovoltaics and critical raw materials.
The measures reportedly include EU-origin requirements in public procurement and limits tied to public support policies, which Beijing argues unfairly disadvantage non-EU companies.
China has formally submitted its concerns to the European Commission, stating that the proposed rules may violate core World Trade Organization principles such as most-favoured-nation treatment and national treatment.
According to Beijing, the framework could hinder Chinese investment, slow Europe’s green transition, and distort fair competition within the EU market.
The ministry urged the EU to remove what it described as discriminatory provisions, including local content requirements, forced technology transfer clauses, intellectual property conditions, and procurement restrictions.
While expressing willingness to continue dialogue, the spokesperson warned that China would closely monitor the legislative process. If the EU proceeds without addressing China’s concerns and causes harm to Chinese companies, Beijing said it would consider countermeasures to protect its economic interests.
The development adds to growing economic friction between China and the European Union over trade, technology, and industrial policy.