Spain proposes tiered ‘Made in Europe’ rules to integrate China

Spanish Minister of Industry Jordi Hereu has proposed a tiered, multi-level system for the ‘Made in Europe’ label to the EU Competitiveness Council in Brussels. The proposal aims to modify the current binary framework of the European Industrial Acceleration Act, which currently requires 70% of components to be manufactured within the EU to qualify for state aid and priority in public procurement.

The Spanish initiative suggests a three-tier structure designed to protect European industry while preventing trade disputes with China. Under this plan, the first tier would consist of the 27 EU member states. The second tier would include European Economic Area nations and trusted partners like the UK and Canada. The third tier would encompass third countries with which the EU holds trade pacts or those considered critical suppliers, such as China.

Specifically, the proposal would allow companies to access state aid if their products contain 40% European components and 30% from second-tier trusted countries, with the remaining 30% sourced from third-tier nations. This approach seeks to facilitate the gradual integration of Chinese manufacturing into European supply chains. The proposal covers various sectors, including steel, automotive, semiconductors, aerospace, and biotechnology.