The European Commission has unveiled plans to include the UK, Japan and up to 40 trusted partners in its Made in Europe manufacturing targets. The proposal, part of the Industrial Accelerator Act, would grant access to subsidies in clean technology, heavy industry and carmaking to manufacturers from partner countries that offer reciprocal access to EU-based producers.

This represents a significant shift from the EU's initial stance, which mirrored France's push for a 'European preference' focusing exclusively on EU-based manufacturers. The change comes as the bloc seeks to shield its strategic sectors from unfair competition from China, with manufacturing's share of EU GDP targeted to rise from 14.3 per cent to 20 per cent by 2035. US companies are unlikely to qualify due to existing procurement restrictions.

The act will impose strict requirements on foreign investments exceeding €100 million from countries dominating strategic sectors. These include maintaining at least 50 per cent EU workforce, involving local companies in manufacturing and transferring technological know-how to European partners. The proposals aim to prevent scenarios where Chinese manufacturers open factories in Europe but employ solely Chinese workers and exclude local businesses.