China Association of Automobile Manufacturers Expresses Serious Concern Over EU's Industrial Accelerator Act Restrictions

The European Commission recently proposed a legislative package titled the "Industrial Accelerator Act" (IAA), introducing multiple foreign investment restrictions targeting four key sectors, including batteries and electric vehicles. The proposal stipulates that foreign ownership stakes must not exceed 49%, mandates compulsory technology transfer, requires at least 50% of employees to be locally hired, and prioritizes "EU-origin" products in public procurement. The China Association of Automobile Manufacturers (CAAM) expressed serious concern over these provisions, stating that they impose unreasonable restrictions on China's automotive industry, constitute systemic discrimination, disrupt normal industrial cooperation and fair market competition between China and the EU, and harm the interests of Chinese automakers and their upstream and downstream enterprises. CAAM emphasized that China’s automotive industry has always adhered to the principles of openness, cooperation, and fair competition, complied with international trade rules, and consistently promoted the global automotive industry’s transition toward greener, electrified, and intelligent development. The association urged the EU to carefully assess the impact of these provisions, abide by World Trade Organization (WTO) rules, and refrain from adopting protectionist measures that distort fair competition. CAAM also stated its firm commitment to safeguarding the legitimate rights and interests of the industry, closely monitoring the progress of the legislation, and supporting its member companies in actively responding to these challenges.