China vows countermeasures if EU enacts 'Made in Europe' plan

Lead

China has warned it will take countermeasures if the European Union enacts its 'Made in Europe' plan, which Beijing describes as systemic discrimination. The EU's proposal, formally known as the Industrial Accelerator Act, was unveiled in March and aims to bolster the bloc's industries against competition from China by requiring companies to meet minimum thresholds for EU-made parts in strategic sectors such as cars, green tech, and steel.

Coverage Comparison

Reporting on the dispute comes from multiple outlets with distinct regional perspectives. France 24 and The Hindu both focused on China's reaction to the EU plan, with headlines emphasizing Beijing's vow of countermeasures. The South China Morning Post, with its Asia-Pacific vantage point, framed the story as an economic confrontation between the EU and China, highlighting the EU's protectionist measures and the deteriorating trade relationship. A separate South China Morning Post report delved into the acrimonious exchanges at a recent EU-hosted event in Beijing, where diplomats and experts clashed over who is at fault for the worsening ties.

Key Claims

The EU's 'Made in Europe' plan, unveiled in March, requires companies seeking access to public funds in strategic sectors to meet minimum thresholds for EU-made parts. According to France 24, the proposal also requires foreign firms to partner with European firms and pass on technological know-how when setting up shop in the bloc. The plan is a key part of the EU's drive to regain its competitive edge and stave off job losses, as reported by multiple sources.

China's commerce ministry submitted comments to the European Commission on Friday, expressing "serious concerns" about the act, which it called "systemic discrimination." The ministry warned that if the EU presses ahead with the legislation and harms the interests of Chinese companies, China will have no choice but to take countermeasures to safeguard the legitimate rights and interests of its enterprises. This warning was reported by France 24 and The Hindu.

The EU imposed tariffs of up to 35.3 per cent on Chinese electric vehicles in 2024, citing unfair state subsidies, according to the South China Morning Post. The same outlet reported that the European Commission is pushing the 'Made in Europe' law to bolster local industries against competition from China, and that China sees the initiative as institutional discrimination.

At a recent EU-hosted event in Beijing, Chinese speakers were accused of dismissing Europe's complaints, while EU diplomats were accused of "bullying" and the bloc's policies were billed as "protectionist" efforts to decouple from China, as reported by the South China Morning Post. The event highlighted the blame game between the two sides over the deterioration in their trade relations.

Perspectives

From the EU's perspective, the 'Made in Europe' plan is a necessary measure to protect European industries from what it sees as unfair competition from heavily subsidised Chinese rivals. European businesses in the affected sectors have long lamented the competitive disadvantage they face, and the plan aims to strengthen the EU's industrial base in response to rising global economic rivalry.

From China's perspective, the EU's initiative is discriminatory, imposing requirements on foreign investors that include local content mandates, mandatory intellectual property and technology transfer, and public procurement restrictions. Beijing has urged the EU to remove these requirements and has warned of countermeasures if the legislation proceeds.

Some observers, including non-EU European countries, may also view the plan as unfair treatment, as noted by a French liberal member of the European Parliament who will lead negotiations on the law. The plan's scope and its potential impact on closely integrated non-EU countries remain points of contention.

Conclusion

The dispute over the 'Made in Europe' plan is part of a broader deterioration in EU-China trade relations, which have been strained by tariffs on electric vehicles and mutual accusations of protectionism. While both sides have expressed a desire to resolve their differences, the recent exchanges suggest that finding an off-ramp may be difficult. The European Commission is expected to propose a sweeping new trade tool this summer, which could further escalate tensions.