China boosts green investments in Europe amid rising tensions

Chinese companies are significantly increasing their green investments in Europe, particularly in Spain and Hungary. Spain is set to receive substantial investments, including €400 million for an electric vehicle factory by Chery and €800 million for green hydrogen projects by Envision Group. Hungary is expected to attract over €51 billion in investments, highlighted by a €7 billion battery manufacturing plant from CATL. These investments are seen as a strategic move by China to influence EU member states and create divisions regarding policies on China. The growing presence of Chinese investments raises concerns about the competitive landscape for European companies. A recent study indicates that Chinese producers may not adhere to fair market practices, producing lower-quality products while benefiting from excessive subsidies. This situation is mirrored in the wind energy sector and electric vehicles, prompting calls for the EU to adopt more reciprocal trade measures. To counteract potential monopolistic practices by Chinese firms, experts suggest that the EU should implement stricter procurement criteria and quotas for locally produced sustainable products. The EU's green hydrogen industry has been vocal about the need for ambitious non-price criteria in public procurement processes. The overarching goal is to ensure a level playing field for European producers while safeguarding the integrity of the EU's energy transition. In conclusion, while welcoming fair competition, the EU must remain vigilant against practices that could undermine its market. The strategic investments by Chinese companies could lead to a scenario where they dominate the market, potentially leading to higher prices and reduced competition in the long run.