Research/Contribution
Contribution · China & Europe

Industrial Accelerator Act: A New Framework for Sino-European Partnerships

How the proposed Industrial Accelerator Act could reshape strategic partnerships through European industrial contribution, shared technology and deeper local investment.

2025 · 4 pages · English

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In brief

This published analysis examines the proposed Industrial Accelerator Act through the lens of Sino-European investment. It considers a framework covering foreign direct investments above €100 million in batteries, electric vehicles, solar photovoltaics and critical raw materials, alongside a country-of-origin manufacturing concentration threshold. The paper explains why these sector choices are particularly relevant to Chinese investors and their European partners.

The central argument is a shift in emphasis: investment would be assessed for its contribution to Europe's industrial base as well as for security risks. The authors examine how this proposed approach could influence joint-venture governance, intellectual-property arrangements, research expenditure, employment and sourcing. The paper treats the text as a proposal subject to further examination and adjustment.

Key takeaways

  1. 01

    Industrial contribution adds another test

    The analysis distinguishes the proposal's focus on jobs, research, technology and sourcing from the security rationale of investment screening, and explains how the two assessments could overlap for the same partnership.

  2. 02

    Six criteria frame the proposed conditions

    The paper describes a four-of-six assessment with a mandatory Union workforce criterion. The other criteria address foreign control, substantive joint ventures, intellectual-property licences, European R&D expenditure and local sourcing.

  3. 03

    Partnership structure becomes central

    The authors connect the proposed rules to practical negotiation issues: meaningful European participation, clearly allocated technology rights and documented local commitments. They also examine provisions intended to address circumvention through European subsidiaries.

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