. Nothing happens at Renault without the approval of the French government, which holds 15pc of its stock and is by far the dominant shareholder. Germany has just allowed China's Cosco to take a major stake in Hamburg's port, one of the continent's most important terminals, while Chancellor Scholz flew to Beijing this month to drum up trade. And even though it is a strategic industry, China is massively increasing production of batteries across Europe. So far this year, China's Svolt Energy has expanded a big new factory in Germany, manufacturer CATL announced plans for a second big plant in Hungary alongside an existing one in Germany, while three more Chinese manufacturers have unveiled plans){kind=link}
Germany and France are growing closer to Beijing as tensions with the US deepen
In the new Cold War economy, trade will be restricted, technology fenced off, and intellectual property fiercely protected. Manufacturing capabilities will be built up, and supply chains brought closer to home to ensure resilience whatever happens.
As relations between the West and China deteriorate sharply, every developed economy will have to pick a side. And it is already becoming clear which one the major powers of Europe – and the European Union itself – have chosen. China.
Over the last few weeks, we have seen example after example of major industrial and commercial ties with China deepening.
Renault is partnering with Geely, presumably with the blessing of President Emmanuel Macron. Chinese investors are buying up a port in Hamburg, a crucial piece of infrastructure. And Chinese companies have announced three major new battery factories in Europe, the key industrial technology of the next decade.