The European Union (EU) is moving to redraw the rules of industrial competition within its borders, setting the stage for a sharper economic confrontation with China. Its proposed “Made in Europe” framework, embedded in the Industrial Accelerator Act, seeks to channel public money into domestic production while limiting reliance on foreign suppliers. The initiative reflects mounting anxiety over deindustrialisation, job losses and strategic dependence on external powers. China, seeing the move as discriminatory, has warned of retaliation. This could be another global trade disruption loading. What exactly is the new EU law? At the centre of the controversy is the Industrial Accelerator Act unveiled by the European Commission in March 2026. The legislation introduces “Made in Europe” requirements that tie access to public funding in strategic sectors to local production thresholds.