Brussels, April 27, 2026 China has warned of retaliatory measures in response to the European Union’s proposed Industrial Accelerator Act (IAA), which aims to bolster strategic industries and prioritize "Made in Europe" products in public contracts.

EU’s Industrial Accelerator Act Sparks Tensions

The EU’s proposed Industrial Accelerator Act is designed to strengthen the bloc’s position in key industrial sectors, safeguard jobs, and promote domestic manufacturing. According to sources in Brussels, the legislation would make "Made in Europe" a requirement for public procurement in these industries.

The policy has drawn sharp criticism from Beijing, which views the measure as protectionist and discriminatory. China’s Ministry of Commerce has repeatedly raised concerns over the potential impact on Chinese exporters, who have long been major suppliers to European markets.

The IAA’s focus on strategic sectors—such as renewable energy, advanced manufacturing, and digital infrastructure—aligns with the EU’s broader push for industrial self-sufficiency. However, the move risks escalating trade tensions with China, one of the bloc’s largest trading partners.

China’s Warning and Potential Retaliation

China has explicitly threatened countermeasures if the EU proceeds with the IAA. Officials in Beijing argue that the policy unfairly targets non-European firms and could violate international trade rules.