CAAM Opposes EU's Industrial Accelerator Act Restrictions on Chinese Firms

On May 22, the China Association of Automobile Manufacturers (CAAM) issued a statement regarding the European Commission's recent legislative proposal for the "Industrial Acceleration Act" (IAA). The proposed legislation targets four key sectors, including batteries and electric vehicles, and introduces restrictive measures such as capping foreign ownership at 49%, mandating technology transfer, requiring at least 50% local workforce participation, and prioritizing "EU-origin" products in public procurement. CAAM stated that these provisions impose unreasonable restrictions on China’s automotive industry, constitute institutionalized discrimination, severely disrupt normal industrial cooperation and market competition between China and the EU, and harm the legitimate rights and interests of Chinese automakers and their upstream and downstream supply chain enterprises. The association expressed grave concern and strong dissatisfaction with the proposal and firmly opposes it. The statement emphasized that China’s automotive industry has always adhered to the principles of openness, cooperation, and fair competition, strictly abides by international trade rules, and continues to drive the global automotive industry toward greener, electrified, and intelligent development. Any unilateral restrictions or deliberate suppression contradicts the fundamental trends of industrial development. CAAM urged the EU to carefully assess the impact of this legislation on China-EU industrial cooperation, fully comply with World Trade Organization (WTO) rules, and refrain from adopting protectionist measures that undermine a level playing field. The association pledged to resolutely safeguard the legitimate interests of the industry, closely monitor the legislative process, and support its member companies in responding to related challenges in accordance with applicable laws and regulations.