The European Commission’s proposed Industrial Accelerator Act (IAA), tabled in March 2026, marks one of Brussels’ boldest attempts yet to strengthen Europe’s industrial base and reduce reliance on foreign supply chains. Positioned under the EU’s wider competitiveness and clean industry agenda, the draft legislation seeks to accelerate strategic manufacturing through faster permitting, tighter scrutiny of foreign investment, and stronger “Made in EU” preferences in procurement and public support schemes.
Supporters argue the Act is a necessary response to geopolitical instability, supply chain fragility, and growing competition in sectors such as batteries, electric vehicles, solar technology and critical raw materials. The Commission’s wider ambition is to rebuild industrial resilience and increase manufacturing’s share of EU economic output.
The policy is already provoking international backlash. China’s Ministry of Commerce has warned of possible retaliatory measures, claiming the proposals discriminate against foreign firms and may breach World Trade Organisation rules. Beijing has criticised the EU’s “European preference” approach as a barrier to investment and fair competition.
The dispute underscores a growing global tension: how far governments can pursue economic security and industrial sovereignty without tipping into protectionism. For Europe, the IAA could define not only its industrial future, but also its trade relations with key global partners.