What happened in China China's commerce ministry registered 'grave concern' on 6 March 2026 over the EU's proposed Industrial Accelerator Act — Brussels's latest attempt to onshore strategic manufacturing and reduce exposure to Chinese supply chains. The response came within days of the European Commission publishing its formal proposal (COM(2026) 100 final) establishing low-carbon and 'Made in EU' requirements across strategic sectors, from energy storage to semiconductors. Beijing's reaction was swift, but the underlying tension had been building for years. Starting in 2026, the EU significantly restricted Chinese entities from participating in Horizon Europe, the €93.5 billion research and innovation programme. The restrictions cover artificial intelligence, quantum technologies, semiconductors and biotechnology. Research actions in health, digital and civil security are now fully closed to Chinese participation. A blanket ban on Chinese organisations joining Horizon Europe innovation projects close to market had already been introduced in 2023. ## How it…