The European Union's trade relations with China have deteriorated in recent weeks, as the bloc attempts to address its ballooning trade deficit with Beijing and reduce its reliance on key goods and services. European leaders are also concerned about what they see as China's unfair competition, which they blame for industrial woes and job losses across the continent.
One of the EU’s responses to these challenges is the Industrial Accelerator Act, launched by the European Commission in March, which aims to “strengthen EU industrial competitiveness” by focusing on a range of measures, including a 'Made in Europe' procurement process, preferring providers based on the continent over third countries.
It also seeks to “speed up the decarbonisation of energy-intensive industries, net-zero technologies, and the automotive sector”.
The plans prompted scathing criticism from China last month, with Beijing arguing that any rules prioritising Europeans would create investment barriers and discrimination – and that countermeasures could follow.
EU Trade Commissioner Maroš Šefčovič hit back at these threats, telling Euronews last week that the EU would stand its ground over its plans to strengthen the bloc’s industrial policy.
