Beijing Threatens Retaliation Over EU's 'Made in Europe' Industrial Protection Plan

China warns EU over 'Made in Europe' plan, vows countermeasures

China has strongly condemned the European Union's proposed "Made in Europe" initiative, signalling it will pursue retaliatory measures should the bloc proceed with the controversial legislation. The EU's framework would mandate companies bidding for public funding in strategic sectors to comply with minimum local content requirements.

On Monday, Beijing's commerce ministry issued a formal statement criticizing the EU's industrial strategy, which the Chinese government characterizes as "systemic discrimination" against Chinese enterprises. The ministry revealed that China had submitted official comments to the European Commission on Friday, outlining its objections to the proposed rules.

The EU's Industrial Strategy

The European Union unveiled the "Industrial Accelerator Act" in March, establishing new requirements for firms seeking public funds in key industries including automotive, renewable energy technology, and steel manufacturing. Under the proposal, companies would need to meet designated thresholds for European-manufactured components in their products and operations.

The initiative has been stalled for months amid internal disputes over implementation details. EU officials argue the measures are essential to strengthen European competitiveness, reverse industrial decline, and prevent significant job losses across member states.

China's Position and Threat

The Chinese commerce ministry made clear its position in an official statement:

"If the EU... presses ahead with the legislation, and thereby harms the interests of Chinese companies, China will have no choice but to take countermeasures to firmly safeguard the legitimate rights and interests of its enterprises."

The Chinese Chamber of Commerce to the EU characterized the plan as a concerning shift toward protectionism, warning it would undermine trade cooperation between the two economic powers.

Business Concerns on Both Sides

European businesses operating in affected sectors have long complained about what they view as unfair competition from heavily state-subsidized Chinese competitors. The EU's proposal specifically targets Chinese battery and electric vehicle manufacturers by requiring foreign firms to establish partnerships with European companies and transfer technological expertise when operating within the bloc.

Published: April 27, 2026