As geopolitical changes have made working with China more risky than before, European firms have backed away from infrastructure projects linked with the Belt and Road Initiative.
The EU’s inquiry over subsidies issued to a Chinese company in the procurement of a train order, announced shortly after a similar probe over electric vehicles, indicates China-EU relations are likely to remain touch-and-go.
As shipments of Chinese cars are stopped by US customs and EU officials continue their inquiry into electric vehicle subsidies, the likelihood of further import controls creeps closer to certainty, analysts said.
Recent comments from officials, as well as years of tension over trade, indicate regulatory action may be taken by the US to limit the potential of China’s electric vehicle industry – which could sour efforts to boost economic growth and export activity.