On March 4, the European Commission put forward a new industrial policy proposal aimed at boosting EU manufacturing and reducing dependency on Chinese imports. The plan is called the Industrial Accelerator Act (IAA).
Under this proposal, companies seeking to participate in public procurement or receive subsidies would be required to meet a minimum share of locally produced components. The rules would particularly apply to sectors critical to the green transition, including steel, aluminium, cement, wind turbines, and electric vehicles, areas where China is a major global supplier.
According to European Union officials, the initiative aims to strengthen EU industrial capacity, increase economic autonomy, and promote domestic production of green technologies.
The proposal has generated differing views among EU member states and business groups. Supporters argue that local content requirements are already in place in major economies such as the United States, China, Brazil, and India, and that similar measures help protect and develop domestic manufacturing. They contend that the EU should adopt a comparable approach to maintain competitiveness and strengthen strategic sectors.
Critics warn that strict rules could heighten trade tensions with partner countries and have a negative impact on the investment climate, including reducing opportunities to attract foreign capital.
The initiative is seen as a significant shift in EU trade policy, particularly in the context of economic relations with China. Currently, a substantial share of the EU’s green technologies depends on Chinese imports, giving the issue strategic importance.
Analysts say that the final content of the legislation and its practical implementation mechanisms will determine whether the EU can strengthen industrial resilience and economic autonomy without simultaneously intensifying trade tensions with Beijing.
The initiative will continue to be discussed between the European Parliament and member states, a process that will shape the future direction of the EU’s economic strategy amid global competition and geoeconomic shifts.
