As tensions escalate, China has called upon EU member states to reconsider the proposed "Made in Europe" legislation, which was introduced by the European Commission in March 2026. This legislation seeks to impose stricter conditions on foreign companies aiming to access EU public procurement and investment opportunities, particularly targeting Chinese enterprises.

Suo Peng, China's trade and economy minister in Brussels, indicated that Beijing is prepared to take retaliatory actions if the EU continues down this path. The proposal is seen by many as an attempt to protect European industries amid growing international competition, effectively excluding firms from nations perceived as economic adversaries.

The proposed Industrial Accelerator Act would prioritize European-made products in strategic sectors such as automotive, green technology, and the energy sector. It also includes requirements for foreign investments over €100 million in specific areas to involve joint ventures with local companies and mandates that at least half of the jobs go to EU citizens.

China's Commerce Ministry has already expressed strong disapproval, characterizing the measures as discriminatory and invoking concerns over double standards in technology transfer rules. Peng pointed out the irony, referencing a 2018 agreement with the U.S. and Japan to oppose forced technology transfers, while calling the EU's actions hypocritical.

Divisions among EU member states complicate the situation further. On one side, France supports stricter local content requirements, while Germany and other nations argue for a more collaborative approach with like-minded partners. Concerns have arisen regarding the potential increase in costs and limited access to innovations stemming from these new regulations.

Additionally, the proposed legislation includes a reciprocity principle in public procurement, indicating that the EU would only open its market to nations that provide similar access to European firms. Currently, China does not have such an agreement with the EU, but Peng expressed readiness for bilateral discussions regarding government procurement.

As negotiations unfold, the stakes remain high, with China warning that failure to address its concerns could severely impact the interests of both Chinese and European firms alike. The growing tension underscores a pivotal moment for EU-China relations as the bloc navigates the fine line between protecting domestic industries and engaging in international trade partnerships.