China threat bolsters support for EU industrial policy
Industry officials at the European Parliament backed the Commission's Industrial Accelerator Act proposal.
The surge in Chinese imports is threatening European industries, prompting a push for the European Commission's Industrial Accelerator Act. Industry insiders warn that time is running out to address Beijing's export threats, which could be more destructive than the first shock following China's WTO entry in 2001. This second wave could impact sectors crucial to Europe's future, such as electric vehicles, steel, chemicals, and wind turbines.
The IAA aims to limit Chinese investments in strategic sectors and set Made-in-EU requirements for public procurement. Despite initial objections from Beijing, the EU is increasingly backing the IAA, with Green MEP Anna Cavazzini calling it a "cornerstone" of the EU's response to China's aggressive trade policies. Germany, once hesitant due to concerns about angering China, is now more supportive amid its car industry's economic crisis.
The EU faces a €1 billion-a-day trade deficit with China, and Berlin and other capitals are urging the Commission to propose concrete measures by next month. President Ursula von der Leyen maintains that dialogue with China is necessary but must result in results, and when dialogue is insufficient, the EU must be ready to use all available instruments.
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