The spokesperson of the Ministry of Commerce answers questions from reporters regarding the EU Industrial Accelerator Act

Q: On March 4th, the European Union released the "Industrial Accelerator Act", which puts forward a series of restrictive requirements for foreign companies to invest in the four emerging strategic industries. What is the comment of the Ministry of Commerce on this?

Answer: China has noticed that the European Union issued relevant laws on March 4th, which set restrictions on foreign companies investing in the four major industries of batteries, electric vehicles, photovoltaics, and key raw materials, including mandatory technology transfer, foreign equity ratio, local product content, and local employees. These restrictions only apply to third country investors who account for more than 40% of the global production capacity in these industries, and explicitly state that "EU manufacturing priority" is given in the field of public procurement. These practices constitute serious investment barriers and institutional discrimination, suspected of violating the principle of most favored nation treatment, and further increasing the uncertainty of Chinese companies investing in the European Union. The Chinese side expresses serious concern about this.

The Chinese side believes that the EU, under the pretext of developing EU related industries and promoting green transformation, is building walls and barriers, engaging in protectionism, which not only backfires but also undermines rules, fair competition, and global supply chain stability.

Practice has proven that protectionism cannot enhance competitiveness, and open cooperation is the right path for development. China and Europe are important economic and trade partners, with broad common interests and positive cooperation achievements in addressing climate change and promoting green transformation. We call on the European side to take the lead in complying with WTO rules, return to the track of fair, transparent, and non discriminatory cooperation as soon as possible, and not go further down the path of rule breaking and protectionism. China will closely monitor the relevant legislative process, carefully evaluate the impact on China's interests, and resolutely safeguard the legitimate rights and interests of Chinese enterprises.