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China Warns EU Industrial Law May Trigger Countermeasures

(MENAFN) China on Monday expresses strong concern over the European Union’s Industrial Accelerator Act (IAA), saying it creates major barriers to investment and amounts to institutional discrimination. Beijing also warns it will take countermeasures to protect what it calls its legitimate rights and interests, according to reports.

A spokesperson for China’s Commerce Ministry says the law introduces several restrictive conditions on foreign investment in key sectors such as batteries, electric vehicles, photovoltaics, and critical raw materials. The spokesperson also criticizes EU rules that limit participation in public procurement and support programs based on origin requirements.

The legislation, introduced in March, is designed to strengthen Europe’s industrial capacity and reduce dependence on external suppliers in strategic industries amid concerns over global competition.

China has formally submitted its objections to the European Commission, stating its position and expressing serious concerns over the policy.

In its comments, Beijing argues that the measure discriminates against Chinese investors and could slow down the EU’s green transition while undermining fair competition within the European market.

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