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EU strips AI, chips and quantum from industrial plan aimed at countering China

Leaked draft shows biotechnology and robotics are other cutting-edge sectors to be cut from Industrial Accelerator Act ahead of unveiling

4-MIN READ4-MIN ListenFinbarr Berminghamin BrusselsPublished: 9:51pm, 3 Mar 2026The European Union’s ambitious industrial policy to challenge China has been gutted, removing AI, semiconductors and quantum computing from a list of strategic technologies that must be “made in Europe” to tap billions in government funds.Biotechnology and robotics are other cutting-edge sectors to be cut from the Industrial Accelerator Act (IAA) ahead of the proposal’s formal unveiling by the European Commission on Wednesday, a leaked draft showed.

Plans to exclude non-EU-based producers from government contracts and funds have been kicked down the road for six months, but the draft suggested those countries that align with the bloc’s economic security policies could eventually be included.

The IAA is designed to promote local industries at the expense of competing companies from outside the EU market.

It aims to reduce EU dependence on China by mandating local content rules for strategic sectors such as electric vehicles and solar for public procurement and state support schemes, meaning a high proportion of qualifying products should be made in Europe.

Read original at South China Morning Post

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