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Why Europe Is Tightening Its Grip On Chinese Tech And Retail Firms

Photo by Christian Lue / Unsplash

Chinese companies operating in Europe face growing political and regulatory pressure as EU leaders consider tougher action against major technology suppliers and fast-fashion retailer Shein.

Brussels is reportedly weighing a plan to force member states to phase out Huawei and ZTE equipment from telecom networks, adding a new hurdle for roughly 3,000 Chinese firms active across the continent.

France is also moving to suspend Shein over consumer-protection and safety concerns, escalating scrutiny after the Netherlands seized Chinese-owned chipmaker Nexperia earlier this year.

Analysts say Europe’s tougher line reflects concerns about national security, China’s stance on Russia, and rising US-China tensions.

A recent survey by the China Chamber of Commerce to the EU found 81 percent of Chinese companies see the bloc’s regulatory environment as increasingly unpredictable.

Economists warn that Beijing could retaliate with its own trade restrictions, raising the risk of further escalation between China and Europe.

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