Beijing tells EU to weaken ‘Made in Europe’ industrial bill ahead of October showdown

by · EUobserver

EU commissioner Maroš Šefčovič and China’s commerce secretary Wang Wentao. The move is the latest piece of shadow boxing between Brussels and Beijing ahead of an October deadline to resolve the multiple trade disputes between the two sides (Source: European Commission)

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By Benjamin Fox,

China has demanded that the EU water down its ‘Made in Europe’ law that would offer incentives for European companies to source materials for their products from European suppliers. 

“The EU is pursuing protectionism in the name of cybersecurity and industrial development,” He Yadong, a spokesman for China’s commerce ministry, said at a news conference in Beijing on Thursday (17 September). 

He added that the ‘Made in Europe’ provisions in the draft Industrial Accelerator Act would breach WTO rules on non-discrimination, urging the EU to “revise the bill’s discriminatory provisions to create a fair, transparent, and non-discriminatory business environment for companies investing and operating in Europe”. 

The EU Commission’s draft Industrial Accelerator Act sets out “European preference requirements”, allowing public buyers to favour EU suppliers and restrict access for foreign bidders.

This provision is widely seen as a way to reduce the EU’s industrial reliance on China, though others, including the UK, have expressed concern that their companies would also be hurt by it. 

The move is the latest piece of shadow boxing between Brussels and Beijing ahead of an October deadline to resolve the multiple trade disputes between the two sides. 

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EU commissioner Maroš Šefčovič and China’s commerce secretary Wang Wentao. The move is the latest piece of shadow boxing between Brussels and Beijing ahead of an October deadline to resolve the multiple trade disputes between the two sides (Source: European Commission)

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Author Bio

Benjamin Fox is our trade and geopolitics editor. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He is based in Nairobi, Kenya, although he often reports from London.

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