Seoul: German Chancellor Friedrich Merz has said he will convey concerns expressed by Asian partners about the European Union's proposed industrial policies to officials in Brussels, warning that measures designed to strengthen European manufacturing could create new trade barriers and strain international economic relationships.
Speaking during his visit to South Korea on Friday, Merz said he had heard concerns about the EU's proposed Industrial Accelerator Act during his recent meetings in Singapore, Japan and South Korea. He said he would communicate these views to the German government in Berlin and European Union institutions in Brussels.
The concerns centre on the proposed Made in Europe policy, which aims to strengthen domestic manufacturing and reduce dependence on suppliers outside the EU in strategically important industries. However, some of Europe's Asian partners fear that the measures could disadvantage foreign companies and limit their access to opportunities in European markets.
The Industrial Accelerator Act was proposed by the European Commission on March 4, 2026. It aims to increase industrial investment, strengthen European production and support the transition towards cleaner manufacturing. The proposal includes European origin and low carbon requirements for certain products under public procurement procedures and publicly supported industrial schemes.
The legislation is intended to improve Europe's industrial competitiveness and reduce its dependence on external suppliers. However, its proposed requirements have raised questions about how foreign companies will be treated when competing for European government contracts and other publicly supported projects.
South Korea has expressed particular concern about the proposed rules. During his meeting with Merz in Seoul on October 29, South Korean President Lee Jae Myung asked Germany to support South Korea's efforts to secure treatment equal to EU member states under the proposed legislation. He described South Korea as an important free trade partner of the European Union.
Lee's request highlights concerns among countries that have established trade agreements with Europe and want to ensure that their businesses are not placed at a disadvantage by the new industrial policy. South Korea and Germany also agreed to strengthen cooperation in areas including semiconductors, batteries, artificial intelligence, critical minerals and supply chain security.
Japan also discussed industrial cooperation and economic security with Germany during Merz's visit to Tokyo on October 28. Japanese Prime Minister Sanae Takaichi and Merz emphasised the importance of considering the interests of both countries in industrial support measures. Their discussions also covered advanced technology, defence cooperation and the protection of critical supply chains.
In Singapore, where Merz began his Asian tour on October 27, he met Prime Minister Lawrence Wong and President Tharman Shanmugaratnam. Their discussions focused on trade, investment, technology, energy and security cooperation. Both countries reaffirmed their support for free trade and an international economic order based on common rules.
The concerns come as Europe seeks to strengthen its manufacturing industries amid growing international competition and uncertainty in global trade. European governments have become increasingly concerned about dependence on foreign suppliers for essential products, including batteries, semiconductors, industrial materials and clean energy technology.
The proposed legislation is part of the EU's wider effort to improve its industrial competitiveness and protect strategically important sectors. However, European leaders also recognise the importance of maintaining strong relationships with international trading partners and attracting foreign investment.
During his visit to Asia, Merz called for closer economic cooperation between Europe and Asian countries. He also supported stronger trade links between the European Union and members of the Comprehensive and Progressive Agreement for Trans Pacific Partnership, known as the CPTPP, which includes Japan and Singapore.
He argued that countries should work together to protect international trade rules and avoid excessive dependence on individual economic powers. Greater cooperation between European and Asian economies could create more opportunities for countries seeking stable and reliable trading relationships.
At the Asia Pacific Conference of German Business in Seoul on October 30, Merz also highlighted the importance of stronger economic cooperation between Germany and South Korea. German and South Korean organisations and companies signed nine memoranda of understanding covering areas including energy, electricity and biohealth, as well as support for startups and access to markets.
Germany and South Korea have also agreed to strengthen their relationship through an enhanced strategic partnership, expanding cooperation in advanced technology, economic security and defence industries.
Meanwhile, the EU's Industrial Accelerator Act remains under consideration and has not yet completed the legislative process. The European Parliament and EU member states must agree on the final legislation before it can become law.
Merz's remarks highlight the challenge facing Europe as it seeks to protect its industrial interests without damaging its international trade relationships. The concerns raised during his Asian visit could become an important part of discussions as European institutions continue working on the proposed legislation.