The European Union is adjusting its subsidy criteria for hydrogen projects in response to concerns from European manufacturers about competition from low-cost Chinese imports. The new rules seek to strengthen local electrolyser supply chains and ensure data security. European companies in the hydrogen sector have been struggling to compete with Chinese producers, leading to calls for criteria favoring local companies in subsidy programs. The EU aims to reduce reliance on non-European equipment by potentially imposing requirements on the origin of equipment used, favoring European production and assembly. The focus on cybersecurity includes ensuring projects meet rigorous data management standards. By adapting subsidy rules, the EU aims to promote fair competition, stimulate demand for European technologies, and protect strategic industries. These measures align with EU's broader policy to support industrial competitiveness while maintaining trade relations and avoiding unfair practices.