New EU regulations and trade barriers are creating friction in the clean energy partnership between Europe and China. Measures such as anti-subsidy investigations into electric vehicles and the Carbon Border Adjustment Mechanism are raising costs and discouraging Chinese investment in European green infrastructure. While these policies aim to protect European industrial competitiveness, analysts warn they may lead to reciprocal restrictions from China. This trade tension risks fragmenting the global supply chain for batteries and renewables, potentially delaying climate goals due to reduced technological exchange.
