China pushes EU to halt “Made in Europe” legislation drive

China has urged EU capitals to abandon the bloc’s proposed “Made in Europe” legislation, warning of countermeasures if the plan proceeds in its current form, amid rising tensions over industrial policy and market access.

Suo Peng, trade and economy minister at China’s mission in Brussels, said Chinese embassies across EU member states had already raised Beijing’s concerns directly with national governments, Caliber.Az reports via European media.

“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 retaliation would follow if the legislation is adopted in a discriminatory manner.

“If the EU insists on this punishment and treats China’s enterprises in a discriminatory manner,” Beijing would be forced to respond with countermeasures.

The European Union is currently debating the Industrial Accelerator Act, a proposal unveiled by the European Commission in March aimed at strengthening Europe’s industrial base by tightening access to public procurement and investment in strategic sectors.

The draft, widely seen as targeting Chinese firms, would prioritise EU-made products in areas such as automotive manufacturing, clean technologies and energy-intensive industries, including aluminium and steel.

It would also introduce conditions on foreign direct investment exceeding €100 million in sectors such as electric vehicles, batteries, solar panels and critical raw materials. In certain cases, companies from countries with dominant global market positions could be required to form joint ventures with European partners, alongside technology transfer obligations and minimum EU employment thresholds.

Beijing has criticised the proposal as discriminatory, accusing Brussels of applying double standards on technology transfer. Peng pointed to a 2018 joint statement with the United States and Japan opposing forced technology transfers.

The EU remains divided over the plan. France is pushing for stronger local content rules, while Germany and several other member states favour a more flexible approach that preserves international cooperation with allied economies.

Some governments have also warned that stricter procurement and investment rules could raise costs and limit access to innovation across the bloc.

The proposal includes a reciprocity principle, under which the EU would only fully open its procurement market to countries that offer comparable access to European firms.

China, which does not currently have such an agreement with the EU, says it remains open to a bilateral deal on government procurement. Peng urged Brussels to respond quickly, warning that delays could escalate tensions.

Otherwise, he said, the plan “will seriously damage the actual interests of Chinese and European companies.”

By Aghakazim Guliyev