China has warned the European Union that it will take countermeasures if it proceeds, without taking into account Chinese positions, to adopt a draft law to strengthen European industry.
Beijing estimates that the Commission's plan for the so-called industrial acceleration will hit Chinese companies, imposing restrictions and conditions of European origin in strategic sectors.
The plan was presented by the European Commission on 4 March and will need to be endorsed by Member States and the European Parliament.
The Chinese Ministry of Commerce announced that it submitted its comments to the Commission on April 24, expressing Beijing's "serious concerns". It also said that China will closely monitor the legislative process and remains ready for dialogue.
However, he warned that if the EU ignores Chinese proposals and insists on adopting the text as it is, harming the interests of Chinese companies, China "will have no choice" but to take countermeasures.
According to European Commission Vice-President Stéphane Sezourne, the text requires companies in strategic sectors to use a certain number or percentage of ingredients of European origin so that they can receive public funding.
The project covers, among other things, the automotive industry, the production of renewable energy equipment such as photovoltaic modules, batteries and heat pumps, nuclear power plants and heavy industry.
Although China is not named in the text, Beijing considers it clearly in the crosshairs. The Europeans have for years accused Chinese companies of unfair competition practices, arguing that they are generously subsidized by the Chinese state.
The Chinese Ministry of Commerce argues that the plan imposes many restrictions on foreign direct investment in four emerging strategic sectors: batteries, electric cars, photovoltaics and critical raw materials.
According to Beijing, the "Made in Europe" clauses will mainly hit Chinese companies, lead to discrimination against them, undermine fair competition and slow down the EU's green transition.
China recovers from oil shock – Industry profits cover an internal divergence
China's industrial enterprises ended the first quarter with faster profit growth, an acceleration that hid a widening gap between companies squeezed by increased costs and others benefiting from rising oil prices and the global artificial intelligence boom.
Earnings rose 15.8% in March compared with a year ago, after jumping 15.2% in the first two months of 2026, according to data released Monday by the Office for National Statistics. For the first quarter, they rose 15.5%, the largest increase for the period in five years and higher than Bloomberg Economics forecasts.
Analysis of the data showed a deeper divergence within China's powerful industrial sector. Inequalities are becoming more pronounced as sectors benefiting from higher prices in oil, metals and chips grow, while the rest are hit by rising raw material costs.
Oil and gas producers saw their profit losses narrow to close to 1% in the first quarter, up from 17% in the January-February period, as crude oil prices soared after US and Israeli attacks on Iran and Tehran's retaliation.
In the electronics industry, profits skyrocketed by 125% year-over-year, thanks to massive global investments in artificial intelligence and data centers. Non-ferrous metal mining also continued to show strong growth.
In contrast, the profits of the "downstream" sectors took a hit, as they found it difficult to pass on the increased costs to customers. Labour-intensive and traditional production industries, such as clothing, footwear and furniture manufacturing, recorded double-digit declines in profits.
"We will see this divergence become even more pronounced in the coming months," said Lynn Song, chief economist for Greater China at ING Bank NV.
Capital.gr
