EU halts funding for European projects involving Chinese investors
The European Union has decided to stop financing European projects that involve Chinese investors, according to SCMP. This move responds to China's overwhelming presence in global manufacturing sectors, which raises concerns about EU economic security.
China currently produces nearly all the world's solar panels, more than half of the global shipping fleet, and one-third of the world's chemical output. The dominance is especially pronounced in the electric vehicle battery market, where Chinese producers control a record 70.4% of global capacity.
Over the last four years, China's share in the battery market has increased by 20 percentage points, while South Korean manufacturers' share has halved to just 15.3%. The leading Chinese battery manufacturer CATL holds 39.2% of the global market, surpassing the combined shares of South Korean and Japanese producers.
The rapid and vast scale of China's industrialization compels the EU to adjust its funding policies regarding projects with Chinese investment and to reconsider risks of competitive dependence.
In conclusion, the EU is taking steps to safeguard its industrial and strategic interests by seeking greater control over key technological markets. The future evolution will depend on shifts in the global economy and EU-China political relations.
This decision is expected to strengthen European industrial autonomy and encourage investment in internal EU technological projects.
