Translation. Region: Russian Federation –
Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
Brussels, March 4 (Xinhua) — The European Commission on Wednesday unveiled a controversial draft Industrial Acceleration Act (IAA), which proposes prioritizing EU-produced goods in state aid measures and public procurement. However, deep disagreements remain among EU member states over the bill, and it has also been criticized by some of the bloc's trading partners.
As the European Commission noted, the IAA targets “strategic sectors,” including energy-intensive industries, clean manufacturing, and the automotive supply chain, as Brussels aims to increase the manufacturing sector’s share of EU GDP to 20 percent by 2035.
The bill, which is seen as a manifestation of a protectionist trend and has drawn criticism from the EU's trading partners, aims to introduce sustainability, viability and the "Made in EU" principle into public procurement and support schemes to stimulate demand for EU-made and low-carbon products.
It is proposed to tighten conditions for foreign direct investment in those sectors that the European Commission defines as strategic, including the production of batteries, electric vehicles, solar panels, as well as the extraction, processing and recycling of critical raw materials.
For large investments in the specified sectors, exceeding 100 million euros (approximately 116 million US dollars), the bill sets requirements for investment admission, including a limitation on foreign participation in capital to 49 percent and an obligation to transfer technology. –0–
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