Ministry of Commerce Holds Q&A Session on Issues Related to the EU's Industrial Accelerator Act

Q: We have noted that the Ministry of Commerce recently submitted its comments on the EU's "Industrial Accelerator Act" to the European Commission. Could you provide more details on this?

A: On April 24, the Ministry of Commerce formally submitted its comments on the EU's "Industrial Accelerator Act" to the European Commission, expressing the formal position and grave concerns of the Chinese side.

The Chinese side believes that the Act sets numerous restrictive requirements on foreign investment in four emerging strategic industries: batteries, electric vehicles, photovoltaics, and `key` raw materials, and establishes exclusive "EU origin" clauses in public procurement and public support policies, constituting serious investment barriers and institutional discrimination.

In its comments, the Chinese side pointed out that the Act mainly has the following problems: First, it is suspected of violating basic principles such as most-favored-nation treatment and national treatment, and violates the rules of multiple agreements including the "General Agreement on Tariffs and Trade 1994", the "Agreement on Trade-Related Investment Measures", the "Agreement on Trade-Related Aspects of Intellectual Property Rights", and the "Agreement on Subsidies and Countervailing Measures". Second, Chinese investors will suffer discrimination, which violates basic market economy principles such as commercial voluntariness and fair competition, and even more importantly, violates the important consensus between Chinese and EU leaders on properly handling frictions and differences, seriously affecting the investment expectations of Chinese enterprises in Europe. Third, it will drag down the EU's green transition process, damage fair competition in the EU market, and bring new shocks to multilateral trade rules.

In its comments, the Chinese side suggested that the EU side delete discriminatory requirements against foreign investors, local content requirements, mandatory intellectual property and technology transfer requirements, and public procurement restriction policies from the Act. It is hoped that the EU side will attach great importance to and earnestly consider adopting the comments submitted by the Chinese side, strictly abide by WTO rules, and avoid discriminatory restrictive measures.

The Chinese side will closely monitor the relevant legislative process and is willing to engage in dialogue and communication with the EU side on this issue. If the EU side disregards China's suggestions, insists on pushing for its enactment, and thereby harms the interests of Chinese enterprises, the Chinese side will have to take countermeasures and resolutely safeguard the legitimate rights and interests of Chinese enterprises.