The European Commission has proposed a new regulation aimed at boosting strategic European industrial sectors by emphasizing public procurement that favors European-made products. This initiative comes as part of a broader strategy to enhance the competitiveness of European manufacturing in key areas, particularly those with high electricity consumption. By requiring public contracts to adhere to EU origin and low-emission criteria, the Commission hopes to sustain demand and stimulate investment in these critical areas.

Under the proposed regulation, EU member states will need to designate specific zones for industrial development focusing on sectors that require revitalization. This zoning aims to encourage concentrated investment and growth, facilitating effective collaboration between public and private sectors. Notably, the rules may also compel Chinese investors to engage in technology transfer and local workforce training, ensuring that the economic benefits of such investments are felt within the EU.

The implications of this proposal are significant as it reflects the EU's commitment to strengthening its industrial base amidst global competition. By placing an emphasis on local procurement and development zones, the European Commission is not only aiming to create jobs but also to promote sustainable practices and innovations in manufacturing. This regulatory push highlights the EU's strategic approach to mitigating reliance on extrinsic supply chains and fostering a resilient and competitive European industrial landscape.