The European Union will mandate companies to source components from at least three non-Chinese suppliers by June 30, 2025, as part of efforts to reduce reliance on Chinese manufacturers. Under Regulation 2025/1197, Chinese medical device manufacturers will be excluded from EU public tenders over 5 million euros, with their participation capped at 50% by value in other contracts. This move is expected to impact 18 critical sectors, with an estimated economic impact of 367.8 billion euros over five years. The Industrial Accelerator Act will impose stringent conditions on foreign investors in sectors dominated by China, such as batteries and clean-tech. Investors from countries controlling over 40% of global markets will face requirements like technology transfers and local production commitments. EU officials cite security and fair competition as reasons for these measures, while Chinese business groups warn of increased costs and slowed decarbonization efforts.