Industry officials have warned that the next wave could be even more destructive. Currently affected sectors include those considered crucial to Europe’s economic and technological future, such as electric vehicles, batteries, steel, chemicals, and wind turbines.
The IAA aims to mitigate this pressure, restricting Chinese investments in strategic sectors like EVs, raw materials, or solar panels. It would also set Made-in-EU requirements for public procurement, potentially excluding Chinese suppliers.
“The level of ambition is justified. If it’s Europe’s main tool to respond to the second China shock, it’s essential to make it count,” Sander Tordoir, chief economist at the Centre for European Reform think tank, told MEPs. “Do it right or don’t do it at all.”
While Beijing has strongly objected to the IAA, it is gaining more support among EU countries and has broad backing in the Parliament.
“The urgency has increased,” Green MEP Anna Cavazzini, co-lead on the file, stated. She referred to the IAA as a “cornerstone” of the EU’s response to China’s aggressive trade policies. “There’s a lot of alignment that we need to strengthen the Commission proposal.”













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