The European Commission is set to introduce stricter funding rules for hydrogen projects to predominantly benefit European companies, addressing concerns raised by local industries regarding the influx of low-cost Chinese imports. The aim is to support the growth of the European hydrogen sector and mitigate cybersecurity risks. European electrolyser manufacturers are apprehensive about their competitiveness against cheaper Chinese alternatives and have advocated for measures favoring domestic companies. The upcoming changes in subsidy criteria are intended to encourage more local production and reduce dependence on non-EU sources. The EU's focus on green technologies imported from China includes recent tariffs on electric vehicles perceived to have unfair advantages due to subsidies. The European Commission's move to safeguard European data from non-EU entities aligns with the broader strategy of promoting local manufacturing and ensuring data security. Despite maintaining trade relations with China, the EU aims to intervene in cases where competition appears to be skewed. The recent allocation of EUR 720 million to hydrogen projects highlighted the prevalence of bids incorporating non-EU equipment. To address this, the EU plans to refine its funding criteria to uphold European standards and foster a competitive environment for local companies.