Kathmandu. China has expressed strong dissatisfaction with the ‘Made in Europe’ plan launched by the European Union (EU) to strengthen its industries and warned of retaliatory measures.

Beijing has called it “systemic discrimination” that limits foreign companies, especially in strategic sectors, which directly affect the interests of Chinese companies.

The EU last March unveiled new rules for companies seeking access to public funding, requiring companies operating in sectors such as cars, green technology and steel to use certain amounts of products produced within the EU. The proposal follows long-running discussions and debates aimed at restoring the competitiveness of European industry, halting industrial decline and protecting jobs.

China’s Ministry of Commerce said in a statement on Monday that it had expressed serious concern over the EU’s proposal and submitted its comments to the European Commission. China has given a clear indication that if the EU implements the plan, it will harm the legitimate rights and interests of Chinese enterprises, saying that it will take preventive measures if necessary.

Businesses within the EU have long complained that it is difficult to compete with Chinese companies that have received heavy government subsidies. Against this backdrop, the proposal, dubbed the Industrial Accelerator Act, also includes a provision to force foreign companies to collaborate with European partners and transfer technology, which is particularly likely to affect Chinese battery and electric vehicle manufacturers.

Meanwhile, the Chinese Chamber of Commerce for the EU also warned that the plan was a sign of protectionist policies and could have a negative impact on trade cooperation between the two sides.