Chinese firms must be extra vigilant in Europe as policymakers there weigh tougher measures against a pair of iconic hi-tech suppliers while France has threatened to suspend fast-fashion retailer Shein, analysts say, as the moves come after a seizure of Chinese-owned chipmaker Nexperia.
The European Commission’s reported plan to force member states to phase out Huawei Technologies and ZTE gear from telecoms networks could mark a fresh regulatory hurdle while serving as a warning to roughly 3,000 Chinese companies operating on the continent, according to the experts.
“Europe is having a fit about China now,” said Andy Xie, an independent China economist. “And after Nexperia, it’s one thing after another.”
European leaders may be taking cues from the US, Xie said. They could also be reacting to perceived Chinese support for Russia in its war with Ukraine, said Chen Zhiwu, chair professor of finance at the University of Hong Kong.
Many point to the growing politicisation of commercial issues and dense regulatory roll-outs that have created a ‘compliance maze’
“If it’s just ZTE and Huawei products that are restricted, then it would not have that much of an economic impact, but then the broader implications are always there,” Chen said.
