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EU's Chinese investment resistance falters

Financial Times Companies •
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Europe's unified front against Chinese investment has faltered as member states pursue conflicting interests. Hungary's outgoing Prime Minister Viktor Orbán leaves behind problematic Chinese investments in electric vehicles and batteries. The European Commission struggles to build a coherent green industrial strategy while dealing with Chinese projects that face criticism for environmental and labor standards.

Brussels has deployed multiple tools to manage Chinese investment with limited success. The EU imposed anti-subsidy duties on Chinese EVs after divisive negotiations, but the measures failed to deter Chinese exporters. The Foreign Subsidies Regulation allows invasive investigations into market-distorting state subsidies, yet cases progress slowly. The Industrial Accelerator Act faces resistance from member states.

Internal divisions undermine Europe's strategic position in the global green technology race. Spain's China-friendly Prime Minister Pedro Sánchez matches Orbán's enthusiasm for Chinese investment. Analysts note Europe's fragmented approach prevents securing a favorable position in emerging green industries. Von der Leyen's "geopolitical Commission" remains more aspiration than reality as China continues expanding its economic foothold.