China says EU bill restricts strategic investment

China's Commerce Ministry said Monday the European Union's "Industrial Accelerator Act" imposes restrictive conditions on foreign investment in key sectors, including batteries, electric vehicles, photovoltaics and critical raw materials. According to state-run XINHUA news agency, the ministry said the draft includes exclusionary provisions favoring EU-made products in procurement and subsidies, according to remarks submitted to the European Commission. It added the bill may violate most-favored-nation and national treatment principles, as well as World Trade Organization (WTO) rules under General Agreement on Tariffs and Trade (GATT) 1994, as well as related agreements. China said the draft undermines fair competition and contradicts China-EU understandings, negatively affecting Chinese firms' investment expectations in Europe. It urged the EU to remove discriminatory conditions on foreign investors, local content requirements, forced technology transfers and procurement restrictions, and to adhere strictly to WTO rules. The ministry said China will closely monitor the legislation and remains ready for dialogue, warning of countermeasures to protect Chinese firms' legitimate rights if the bill is passed. The proposed law, introduced in January, aims to boost EU industrial output, reduce reliance on foreign investment and restore competitiveness.