European Union plans for new industrial legislation aimed at limiting China’s influence in European markets may disrupt efforts to reset relations with the United Kingdom, according to government sources. The legislation, known as the Industrial Accelerator Act or “Made in Europe” law, is designed to protect EU industry from increasing external competition, particularly from China. However, it was not included in the reset agenda previously agreed upon by former UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen during their meeting in May 2025.
Following Starmer’s resignation, the UK government has indicated a desire to revisit the summit’s agenda, which was scheduled for July but subsequently postponed. Sources suggest the new UK leadership is interested in addressing the Industrial Accelerator Act directly rather than avoiding contentious issues. One insider emphasized the need to confront “the big issues” and suggested that the legislation should become a key topic for discussion in any upcoming negotiations.
The Industrial Accelerator Act imposes requirements that could effectively bar British firms from certain sectors of EU industry unless they meet new standards related to origin and production. This has raised concerns in the UK about the potential for diminished market access and the overall impact on trade relations between the two parties.
The original reset summit aimed to improve cooperation between the UK and the EU after years of strained relations following Brexit. Some officials see the “Made in Europe” legislation as a significant challenge to this objective if it excludes the UK from important industrial collaborations.
At the same time, EU officials maintain that the legislation is a necessary measure to bolster the bloc’s industrial base and reduce reliance on foreign competitors. They argue it is vital to protect European jobs and technology in the face of strategic challenges posed by China’s global economic expansion.
Negotiations over the reset summit’s agenda and the Industrial Accelerator Act are ongoing. The outcomes will likely shape future UK-EU economic ties and the wider geopolitical balance concerning China’s expanding presence in international industry. Both sides appear to acknowledge the need for frank dialogue but differ on how to reconcile industrial policy with broader diplomatic goals.
