A major investment deal reached in December between the European Union and China, after seven years of painful negotiations, may end up being the high-water mark for ties that are now quickly deteriorating again.
Since then, the EU’s executive branch and Germany have each formulated legislation that would make life harder for Chinese entities to invest, while joining the U.S. in swapping tit-for-tat sanctions with Beijing.
Italy’s government has turned from being an enthusiastic backer of President Xi Jinping’s Belt and Road Initiative to blocking planned acquisitions by Chinese companies.