BUSINESS

‘Made in the EU’ Push Sparks Global Trade Pushback

Published: Apr. 18, 2026 12:14 a.m. GMT+8

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Employees work on an electric-vehicle battery system production line at an auto company in Chemnitz, Saxony, Germany. Photo: VCG

A proposed European Union law aimed at boosting domestic manufacturing is drawing growing concern from global trading partners over strict local-content and investment requirements.

The Industrial Acceleration Act, designed to secure Europe’s clean-technology supply chain, could create significant hurdles for foreign companies seeking to invest or sell in the bloc.

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EU's Industrial Acceleration Act proposes "Made in EU" rules for procurement/subsidies to raise manufacturing GDP share to 20% by 2035 from 14.3% in 2024, targeting batteries, EVs, photovoltaics, critical materials.
FDI >€100M from countries with >40% global capacity in these sectors requires prescreening, meeting 4/6 criteria like 49% foreign ownership cap, 1% R&D spend, 50% local workforce.
UK, China, others criticize barriers/WTO risks; German firms urge restraint; under review, no timeline.

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Who’s Who

Roland Berger: Roland Berger is a consulting firm. Global partner Sun Yanyin stated that China dominates global capacity in EVs, power batteries, and photovoltaics, expecting significant impact on Chinese firms from the EU Industrial Acceleration Act. He highlighted its broader scope than prior measures and tangible effects from overseas factory screening and FDI rules; firms are wait-and-see.

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