Beijing, 27 April 2026
China’s Ministry of Commerce said on Monday that the European Union’s (EU) Industrial Accelerator Act (IAA) poses serious investment barriers and constitutes institutional discrimination, Chinese news agency Xinhua reports.
A ministry spokesperson stated that the Act imposes multiple restrictive requirements on foreign investment in four strategic emerging industries — batteries, electric vehicles, photovoltaics, and critical raw materials — and includes exclusionary EU-origin clauses in public procurement and public support policies.
The ministry has formally submitted comments to the European Commission, outlining China’s position and expressing serious concerns regarding the legislation.
In its submission, China argued that the legislation may violate fundamental principles, including most-favoured-nation treatment and national treatment. It is seen as discriminatory against Chinese investors and, according to Beijing, could slow the EU’s green transition and undermine fair competition in the EU market.
China urged the EU to remove discriminatory provisions affecting foreign investors, including local content requirements, mandatory intellectual property and technology transfer conditions, and restrictions in public procurement.
The spokesperson added that China will closely monitor the legislative process and remains willing to engage in dialogue with the EU.
However, if the EU proceeds with the legislation without addressing China’s concerns and thereby harms the interests of Chinese companies, China will take countermeasures to safeguard the legitimate rights and interests of its enterprises.
Source – Xinhua / People’s Daily Online