China Halts Investment in Pro-Tariff EU Countries

China has instructed its automakers to halt significant investments in European nations that support new tariffs on Chinese electric vehicles (EVs), which can be as high as 45.3%. This directive follows a contentious European Union vote where ten countries, including France and Italy, backed the tariffs, while Germany opposed them and twelve abstained. Chinese companies such as BYD, SAIC, and Geely are advised to delay plans for new factories in pro-tariff countries and to be cautious with investments in abstaining nations. In contrast, they are encouraged to invest in countries opposing the tariffs. This move is expected to further strain trade relations between China and Europe, as countries like Italy and France have actively sought partnerships with Chinese EV makers amid concerns about the impact of cheap imports on local industries. The situation reflects broader tensions in international trade, particularly in the automotive sector.