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Beijing: China has put the European Union on notice over its proposed "Made in Europe" Industrial Accelerator Act. The proposal aims to give preference to EU-manufactured products in procurement of goods for key industries such as electric vehicles, batteries, green tech, and steel to decrease dependency on Chinese imports.

The Chinese Ministry of Commerce accused Beijing of "institutional discrimination" and breaking WTO rules. It said in a statement released on April 27 that if the EU proceeds and is damaging to Chinese companies, "China will have to take measures to firmly protect the legitimate rights and interests of its enterprises."

The new EU proposal is a way to protect against intense competition and overcapacity in key sectors from China. Experts say the dispute could provoke a wider trade war at a time when EU-China relations have grown frosty. The proposal has yet to be ratified by member countries and the European Parliament.