China Warns EU: Retaliation Awaits if No Changes Made
The EU has repeatedly invoked the pretexts of "security" and "industrial revitalization" to implement trade protectionism and institutional discrimination, applying double standards on economic and trade issues—actions that have drawn clear opposition from China.
According to a Chinese diplomat quoted by Reuters on April 29, if the European Union fails to make substantial revisions to its proposed drafts of the Industrial Accelerator Act (IAA) and the Cybersecurity Act (CSA), China will take retaliatory measures against the EU and its enterprises.
The Chinese diplomat told reporters that the EU is practicing "typical double standards," though they did not specify what specific countermeasures might be taken. The diplomat emphasized that China has already sent letters to the European Commission departments responsible for industry and telecommunications, listing the measures China hopes the EU will cancel.
China has stated in official statements that these two legislative proposals are discriminatory, violate World Trade Organization rules, and are detrimental to the development of bilateral trade and cooperation between China and the EU.
Currently, EU member states and the European Parliament remain at the early stages of the legislative process, and the full implementation of this package of laws will require a lengthy procedure. The diplomat noted that Chinese embassies across EU member states are also simultaneously conveying China’s position to local governments.
Under the revised Cybersecurity Act, the EU plans to gradually phase out components and equipment from so-called "high-risk" suppliers in key industries. The new provisions include establishing a mechanism for "high-risk suppliers," allowing certain countries or companies to be excluded from critical infrastructure projects.
The EU's Industrial Accelerator Act is part of a broader strategy to boost domestic industry, with its core objective being to increase the proportion of "Made in EU" products in public procurement, helping European firms compete against counterparts from China and the United States—companies that do not face Europe’s stringent regulatory requirements or high energy costs. For this reason, media and industry insiders widely refer to it as the "Buy European" or "Made in EU" Act.
The bill will impose mandatory requirements on domestic production capacity and low-carbon manufacturing for sensitive industrial goods eligible for production subsidies and public procurement.
Concerns and criticism regarding these two EU legislative initiatives have emerged from various Western media outlets, think tanks, and industry sectors.
Previously, the UK's Guardian described the Industrial Accelerator Act as a "major shift" in EU economic policy, arguing that its "Buy European" orientation marks a departure from the EU’s long-standing commitment to open markets toward a more protectionist industrial policy path.
Some analysts warn that such local content requirements, technology transfer obligations, and "Europe-first" procurement clauses could intensify global trade tensions and trigger a chain reaction of retaliatory measures.
The Chatham House also pointed out that the "Europe-first" mechanism embedded in the bill essentially represents a significant revision of the EU’s free trade principles. At the same time, some European industries and EU officials have expressed concerns that the new regulations may raise compliance costs for businesses, disrupt existing supply chains, and further undermine the long-standing openness and competitive neutrality of the European market.
Regarding these two legislative initiatives, China has made its position unequivocally clear.
On April 17, China’s Ministry of Commerce formally submitted comments on the EU’s draft revision of the Cybersecurity Act, expressing serious concerns and formal positions.
As explained by a spokesperson for the Ministry of Commerce, China views the draft as a typical case of politicizing and over-safeguarding economic and trade issues under the guise of cybersecurity and supply chain security. It introduces highly subjective and arbitrary "non-technical risks," particularly by identifying "countries of cybersecurity concern" and "high-risk suppliers" in the draft, then excluding all entities from listed countries and suppliers across the entire supply chain in 18 sectors including energy, transportation, and ICT—a move that severely undermines fair competition.
In its comment, China recommended removing provisions related to "countries of cybersecurity concern" and "non-technical risks" from the draft, as well as deleting or substantially revising the criteria and restrictive measures associated with the designation of "high-risk suppliers."
On April 24, China formally submitted its comments on the EU’s Industrial Accelerator Act, pointing out that the bill imposes numerous restrictive requirements and exclusive "EU origin" clauses on foreign investment in four emerging strategic industries: batteries, electric vehicles, photovoltaics, and critical raw materials—constituting serious investment barriers and institutional discrimination. China urged the EU to remove discriminatory requirements for foreign investors, local content mandates, forced intellectual property and technology transfer obligations, and public procurement restrictions contained in the bill.
China emphasized that if the EU ignores China’s recommendations, persists in pushing forward these laws, and thereby harms the interests of Chinese enterprises, China will have no choice but to take countermeasures to firmly safeguard the legitimate rights and interests of Chinese companies.
Original: toutiao.com/article/1863859815634956/
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