The European Commission is weighing a major shift in industrial policy that would require up to 70% of the content in certain critical products to be sourced from within Europe, according to a draft proposal reported by the Financial Times. The plan forms part of the forthcoming Industrial Accelerator Act, due to be presented on December 10, and is intended to reduce the bloc’s reliance on Chinese manufacturing across strategic sectors.

The proposals, overseen by the European commissioner Stéphane Séjourné, would apply to industries deemed highly exposed to foreign supply chains—including clean technologies, cars and heavy industrial components. EU officials told the FT that the local-content thresholds could reach 70% in some cases, though final figures may vary depending on the sector’s level of dependency and the bloc’s current production capacity.

The rules would apply only where public money is involved, such as in procurement contracts, state-backed loans, subsidies or incentives. In practice, this means that government support for electric vehicles, batteries and other strategic technologies could be limited to products that meet European content benchmarks.

Officials say the move is a response to long-standing concerns about China’s dominance in key technologies. The policy mirrors elements of Beijing’s own industrial frameworks, including “Made in China 2025”, which link market access to domestic production and local partnerships. Brussels argues the EU now requires a similar level of protection to safeguard its industrial base. One official told the FT the aim was to strike a “delicate balance” between protecting European industry and maintaining openness.

Countries traditionally sceptical of local-content rules—most notably Germany—are now more open to the idea, given growing pressures from cheap Asian imports, high energy costs and the impact of U.S. tariffs. Europe’s solar sector, steelmakers and automotive manufacturers have all struggled to remain competitive as imports have surged.

However, the proposals face internal resistance within the Commission. The trade directorate is reportedly cautious about measures that could breach World Trade Organization rules, which generally prohibit favouring domestic suppliers except in limited security-related circumstances. Officials worry that mandating European-made components could raise costs significantly for businesses and risk pricing some products out of the market.

The FT reports that one area likely to be prioritised is solar panel inverters, which have security-sensitive shutdown mechanisms. These may be among the products required to be predominantly made in Europe under the new rules.