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Brussels Tightens Oversight of Chinese Companies

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China has accused the European Union of creating unfair “trade and investment barriers,” issuing the statement shortly after the EU launched a new, in-depth investigation last Thursday under the Foreign Subsidies Regulation (FSR) into Nuctech, a Chinese manufacturer of security equipment. This move came just days after a raid on Temu’s Dublin office, also carried out under the same regulation.

The China Chamber of Commerce to the EU (CCCEU) voiced “strong opposition” to what it described as the European Commission’s “targeted and excessive” investigations aimed at determining whether Chinese state subsidies were distorting competition in the European market.

According to the chamber, the FSR is being applied unfairly: so far, most investigations have focused exclusively on Chinese companies or businesses backed by Chinese capital.

A survey conducted this year by the CCCEU, covering 205 Chinese companies and organizations, found that more than 60% of Chinese firms operating within the EU have been directly affected by the implementation of the FSR. Many companies reported business disruptions, lost commercial opportunities, and increased operational risks. Over half of respondents said the FSR had harmed their reputation and the way they are perceived in the market. Beijing further claimed that some firms were forced to scale back or halt projects as a result of these investigations, leading to losses exceeding $2.05 billion.

A report published in May by the U.S. law firm Arnold & Porter noted that Brussels has launched investigations largely based on political and economic priorities, focusing mainly on strategic sectors such as telecommunications, clean energy, infrastructure, and security equipment.

The EU’s heightened scrutiny of Chinese subsidies comes amid growing worries within the bloc that European industry cannot compete with the surge of Chinese imports. French President Emmanuel Macron has described the situation as a “life or death moment” for Europe’s industrial base.

As a result, despite being major trading partners, tensions between China and the EU are rising, especially over Beijing’s support for renewable energy and electric-vehicle sectors. At the same time, the EU’s tougher approach reflects its broader goals: reaching net-zero emissions by 2050 and reducing technological dependence on China, a shift that signals Europe’s increased focus on security and strategic resilience.

Author: Sesili Adamia

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Israel Defense Forces Halt Use of Chinese-Made Cars

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In early November 2025, the Israel Defense Forces (IDF) announced a decision to cease using cars manufactured in China, citing concerns that data collected by these vehicles could be transmitted to China. According to the IDF, by the first quarter of 2026, about 700 vehicles—including the Chery Tiggo 8 Pro—will be removed from parking areas used by junior officers. The decision followed increasing suspicions that the smart systems embedded in the cars could gather sensitive information about Israel’s military activities and send it to China or other third parties.

This move is not based solely on hypothetical fears of future espionage. Chinese-made vehicles, which have been provided to IDF colonels and other officials since 2022, operate on closed operating systems. These vehicles are equipped with advanced smart technologies, including cameras, microphones, sensors, and communication systems capable of collecting geolocation data, audio and video recordings, and even biometric information. There is a tangible risk that such data could be transmitted to external servers—potentially located in China—without the knowledge or consent of the driver or the importing company.

Moreover, built-in GPS systems continuously collect real-time location and diagnostic data. The Chery Tiggo 8 Pro, in particular, is equipped with high-resolution 360-degree cameras that are capable of recording military exercises, troop movements, and military equipment. Such capabilities raise serious concerns that sensitive military information could be inadvertently captured and stored.

Notably, Israeli security officials attempted to “sterilize” the vehicles—seeking technical solutions to prevent any transmission of data to external entities—but ultimately concluded that this was not feasible. Taking these risks into account, representatives of Israel’s security and intelligence agencies decided to prohibit Chinese-made vehicles from entering state and security agency premises altogether.

In early November, Israel’s aerospace and defense industries also banned the use of Chinese vehicles. Plans are underway to prohibit these vehicles from entering military-industrial facilities entirely. Personnel who own Chinese-made cars will be required to park them in designated parking areas located outside factory premises.

According to the Israeli Air Force, there are already restricted zones where Chinese vehicles are not permitted to enter. Authorities intend to expand these restricted areas further to prevent unforeseen incidents and to ensure that vehicles driven by employees or visitors do not accidentally enter sensitive or classified locations.

These decisions by the IDF and related defense industries may have a significant impact on the export of Chinese vehicles to Israel. The process is already underway, as the issuance of import licenses for Chinese automobiles has been substantially restricted and delayed. Available information indicates that following the postponement of licensing deadlines for major importers, the Chinese government officially contacted Israel regarding the matter.

Israel’s actions align with similar measures taken by the United States and the United Kingdom, where the use of Chinese-made equipment is restricted on government and security agency premises. In the United States, the Pentagon banned not only Chinese-made vehicles but also Chinese-manufactured mobile phones from military, security, and government facilities.

The risks associated with Chinese smart technologies are also relevant to Georgia. Over recent years, Georgian government institutions have actively purchased and deployed Chinese-made surveillance cameras. Research conducted by Civic IDEA indicates that these cameras pose a national security risk, as there is a realistic possibility that data collected by Chinese surveillance systems could be accessed by Chinese intelligence services. For this reason, certain Chinese-made surveillance cameras have been banned in several Western countries, including the United States, the United Kingdom, and a number of European Union member states.

At the same time, Chinese-made vehicles are rapidly entering the Georgian market. Between January and August 2024, imports of Chinese automobiles to Georgia increased by 111 percent compared to the same period in the previous year. While experts note the affordability and availability of these vehicles, they also warn of associated risks, including non-compliance with European quality standards. Notably, in 2025, following the signing of a memorandum of cooperation with Sena Auto Group, the Chinese automotive brand Chery—banned by the Israel Defense Forces—officially entered the Georgian market.

Author: Mariam Kapanadze

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Georgia and China Deepen Transport Cooperation

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Georgia is deepening its relations with China, especially in transport, trade, and infrastructure. Economy Minister Mariam Kvrivishvili met with China’s Vice Minister of Transport, Li Yan, in London to discuss expanding cooperation, while also discussing maritime links and transport infrastructure. The focus was the Middle Corridor, which is the Trans-Caspian route connecting China and Europe, where Georgia plays a central transit role.

Following Prime Minister Irakli Kobakhidze’s visit to China earlier this month, both countries agreed to launch direct flights from Tbilisi to Beijing, with a potential Tbilisi-Shanghai route under discussion. Kvrivishvili stated that these measures would strengthen trade, economic ties, and people-to-people links. Georgia also emphasised the value of Chinese expertise in maritime development.

Cargo transit along the Middle Corridor has surged dramatically. Over the past three years, shipments increased by nearly 90%, and total cargo in 2024 reached 4.5 million tons, which is expected to grow to 5.2 million tons in 2025. Investments in the Anaklia deep-water port and the Baku–Tbilisi–Kars railway aim to expand to 10 million tons annually by 2027.

However, experts warn that China’s rapid involvement is less about Georgia’s benefit and more about securing its own strategic foothold. Chinese companies are dominating Georgia’s infrastructure projects, such as roads and critical infrastructure. These investments often carry hidden costs of debt dependency, opaque agreements, which imply political leverage favoring Beijing.

Analysts argue that while Georgia benefits from short-term economic gains and growing cargo volumes, the long-term strategic costs are high. Loss of autonomy, as in economic dependency, is an exposure to political leverage by Beijing. In this context, critics argue that Georgia risks becoming a pawn in China’s Belt and Road Initiative, which is primarily used to advance Beijing’s geopolitical ambitions. Georgia’s growing dependence on Chinese investment, technology, and trade channels underscores the need for careful scrutiny and safeguards to ensure that national interests are not subordinated to foreign strategic priorities.

Author: Mariam Sanadze

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Another Tragedy on a Georgian Road Project Built by a Chinese Company

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On November 23, another tragedy happened on the Kvesheti-Kobi construction section. Near the village of Tskere, during the construction of a retaining wall, a large amount of earth collapsed due to a landslide and trapped five workers of the construction company beneath it. They were citizens of Turkmenistan and China. Four of them died on the spot, and one of them was taken to a hospital. According to the Roads Department, “Emergency Situations Management Service is mobilized at the scene of the incident, and an investigation has already begun”.

The project is carried out by the Chinese companies – China Railway Tunnel Group Co and China Railway 23rd Bureau Group Co. In the government-issued statement, the requirement for stricter safety standards for construction companies is discussed.

Unfortunately, the tragedy that occurred on Kvesheti-Kobi road is just another proof of this grave trend, about which the Civic IDEA has been reporting on for the past few years, issuing recommendations and warnings to both the government and the population. 

Since 2017, reports issued by various international organizations indicated that the above-mentioned contractors had only formally complied with safety rules, while real monitoring was not carried out. This was proven in Georgia back in 2022, when an explosion in a CRTG tunnel led to the death of one person due to the accumulation of CO₂.

The company has a problematic reputation not only in Georgia but around the world as well. CRTG and its parent company, CRCC, are blacklisted by the US Department of Defense. In addition, in 2019, the World Bank issued a 20-month package of sanctions against these companies due to their fraudulent practices, including falsifying tender documents and violating workers’ labor rights.

In response to warning reports, “Civic IDEA” has been accused of acting against the interests of the country. The tragedy that occurred in Kobi raises the question of whose interests were served by those people who, for years, have been ignoring our recommendations as well as those issued by other international and non-governmental organizations working on these issues.

Given the high technical and environmental risks and warnings, strict monitoring of contractors was clearly necessary. However, this case is yet another tragic proof that all warnings were ignored by state agencies, and moreover, they continue to unconditionally support these companies. It is worth asking what interests were behind these deals that the Georgian Dream regime made with internationally sanctioned Chinese companies with a bad reputation.

 

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Li Urges China and Germany to Deepen Dialogue and Resolve Bilateral Issues

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Chinese Premier Li Qiang has called on China and Germany to deepen their dialogue and resolve bilateral concerns, underlining Beijing’s commitment to strengthening the political and economic foundations of the relationship. Speaking at a meeting with German Chancellor Friedrich Merz on the sidelines of the G20 Summit in Johannesburg, Li emphasized the need for “joint efforts to strengthen dialogue and communication, and properly handle their respective concerns.”

Li recalled that since diplomatic ties were established 53 years ago, China and Germany have developed into important economic and trade partners, and that sustained cooperation has advanced the development of both nations. He stressed that mutual respect and win-win cooperation must remain the guiding principles of their bilateral relations. A foundation upon which a stable, sustainable, and high-quality all-around strategic partnership can be built, in his view.

In his remarks, Li expressed Beijing’s willingness to strengthen strategic communication with Berlin, underscoring the importance of respecting each other’s “core interests and major concerns.” He called on Germany to pursue a more rational and pragmatic China policy, urging Berlin to move beyond political interference and pressure and instead focus on areas of shared benefit.

Looking ahead, Li argued that the two sides should expand pragmatic cooperation across a broad spectrum of sectors. He identified key emerging fields, such as new energy, biomedicine, and hydrogen energy technology.

Li also pointed to the broader context of European integration, noting that this year marks the 50th anniversary of diplomatic relations between China and the European Union. He urged Germany to help shape an EU-China relationship based on a long-term perspective and a more open-minded framework, and suggested Berlin has a role to play in encouraging the EU to regard China not as a challenge, but as a partner.

On the multilateral front, Li said China stands ready to work closely with Germany through global institutions like the United Nations and the G20. He argued that closer cooperation in these forums can advance global governance, uphold multilateralism, defend free trade, and make both countries a “constructive and certain force for promoting peace and development.”

Chancellor Merz responded to Li’s tone, highlighting the long and productive history of economic ties between Germany and China. He welcomed the deeper engagement proposed by Li, noting Berlin’s eagerness to cooperate in forward-looking areas such as science and technology. Merz reaffirmed Germany’s commitment to open markets, to strengthening political, economic, and trade relations with China, and to playing a constructive role in shaping EU-China dialogue.

Li’s appeal to Germany comes at a sensitive moment: the two countries face a complex mix of strategic tension and economic interdependence. Berlin has raised concerns about China’s industrial policies, and German firms have recently fret over restrictions on key Chinese exports. At the same time, both sides recognize the mutual benefits they derive from their close economic ties.

By emphasizing pragmatism, innovation, and multilateral engagement, Li is signaling that China hopes to manage its relationship with Germany not just through trade, but through a long-term, strategic partnership – one that weathers political headwinds and builds cooperation in cutting-edge fields.

Author: Nia Kokhreidze

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Tensions Rise in China-Japan Diplomatic Relations

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China-Japan relations have become extremely strained since Japan’s new leader, Sanae Takaichi, suggested that a military conflict in the Taiwan Strait might be considered a “survival-threatening situation” for Japan, which would justify the country’s military intervention. This comment became the catalyst for China’s intense reaction, as for Beijing, Japan’s move signifies crossing a “red line.” According to the Chinese ruling party, Takaichi’s statements reflect the “military ambitions” of Japan’s right-wing forces and threaten the balance of power in the region, according to which China is ascending as a superpower. This confrontation also underscores Beijing’s deep-seated concern caused by the increase in defense spending and the intensified military coordination among US allies in Asia.

China’s intense reaction toward Japan, according to analysts, aims to send a warning to the entire system of US allies. Experts note that Beijing is using this confrontation to create a “demonstration effect,” in order to remind other regional actors, including Australia and South Korea, that intervention in the Taiwan issue will lead to severe consequences. Beijing’s message is clear: supporting “Taiwan independence” will cost countries dearly. This is their overt attempt to deter US allies from interfering in China’s internal affairs.

Against this backdrop of tension, Taiwan’s President Lai Ching-te openly expressed support for Japan via social media. The President posted photos of himself eating sushi made from Japanese-sourced seafood, which, according to him, highlights the “firm friendship” between Taiwan and Japan. Taiwan’s Foreign Minister called China’s use of economic coercion and military intimidation against other nations “bullying behavior,” and urged Taiwanese citizens to increase their purchases of Japanese goods. In response, Beijing stated that Taiwan is an inseparable part of China and that the actions of President Lai Ching-te’s administration “cannot change this ironclad fact.”

The conflict was also evident at the diplomatic level. China’s Foreign Ministry confirmed that there are no plans for Chinese Premier Li Qiang to meet with the Japanese leader at the G20 summit. Foreign Ministry Spokesperson Mao Ning strongly demanded that Japan retract its “erroneous remarks,” and emphasized that Japan is obligated to uphold the “one-China principle.” Beijing, as a retaliatory step, postponed the China-Japan-South Korea Culture Ministers’ Meeting because, according to them, Takaichi’s comments undermined the foundation of trilateral cooperation.

Author: Mariam Macharashvili

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China is taking steps against Japan

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China and Japan are facing a sharp economic downturn after Tokyo’s Prime Minister, Sanae Takaichi, made recent comments about a possible Chinese attack on Taiwan. The remarks were unprecedented for a Japanese leader, which triggered a series of economic and cultural consequences between Japan and China.

The Chinese Commerce Ministry said trade cooperation between the two countries had taken a “great” hit, and warned of “necessary measures” if Japan “insists on going down the wrong path”. One of the most vital and immediate pressure points in seafood. Under current circumstances, China’s Foreign Ministry also suggested there would be “no market” for Japanese seafood, after Japanese media outlets NHK and Kyodo reported about a potential import suspension from Beijing. Tokyo has not received an official note, but the foreign ministry’s tone “raised the prospect” of an imminent ban.

The potential suspension would follow China’s restrictions imposed in 2023 over the release of treated Fukushima wastewater. Imports resumed earlier this year. Before the 2023 ban, China (including Hong Kong) accounted for more than a fifth of Japan’s seafood export market.

Tokyo is trying to avoid escalation and has taken diplomatic steps. Japan reiterated that its One China policy remains unchanged and sent senior envoys to Beijing for talks. According to previous reports, Chinese Premier Li Qiang has no plans to meet Takaichi during the G20 summit in South Africa. According to NHK, Japanese officials protested against inflammatory social media posts by a Chinese diplomat and requested corrective action.

Analysts say that China’s retaliatory steps against specific sectors such as fisheries, tourism, and entertainment will not have a political impact on Tokyo. As one expert at Hosei University told CNN, dialogue may be the only path Japan can maintain “while waiting for an opportunity for China to de-escalate.”

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Japan-China Relations: Diplomatic Spat Leads to Economic and Travel Restrictions

Newswire, ერთი ახალი ამბავი / /

Relations between China and Japan have sharply escalated following a statement made by Japanese Prime Minister Sanae Takaichi regarding Taiwan. The diplomatic confrontation has been followed by economic and travel restrictions, impacting citizens of both countries.

On Monday, Japanese tourism and retail-related stocks fell after China advised its citizens to refrain from traveling to Japan. Chinese travelers canceled over half a million travel tickets bound for Japan. In addition, Tokyo urged its citizens in China to enhance security measures and avoid crowded places amid rising anti-Japanese sentiment.

During the same period, the release of Japanese films was suspended, and many cultural and multinational events were canceled. On Tuesday, China’s permanent representative to the UN stated that Japan is “completely unacceptable” as a permanent member of the UN Security Council.

China maintains that “No market” for Japanese seafood. It is noteworthy that a similar restriction was imposed in 2023 when Japan began releasing over 1 million tons of contaminated water into the ocean from the damaged Fukushima nuclear plant. Today’s tension is significantly more acute.

Sanae Takaichi’s stance toward China resembles Shinzo Abe’s policy. Her priorities include strengthening Japan’s defense, particularly on the islands in the East China Sea, including the Senkaku Islands. Takaichi’s push to increase defense spending is supported by Donald Trump, who wants US allies in Northeast Asia to allocate more resources to their own security.

In the short term, the aggravated relations primarily affect economic ties and people-to-people connections. It is clear that the economic restrictions and the limitations on Chinese travelers visiting Japan will significantly damage the Japanese economy.

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Tensions on the Senkaku Island Fuel China–Japan Clash

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China-Japan relations have entered a sharply strained phase as maritime confrontations, diplomatic protests, and public debate over Taiwan are reshaping the regional security landscape. Developments in mid-November – including Chinese Coast Guard activity near the disputed Senkaku Islands, Beijing’s advisory discouraging travel to Japan – reflect the growing fragility of ties between Asia’s two largest economies.

On November 16, a formation of China Coast Guard ships sailed through waters around the Japan-administered Senkaku Islands, a contested territory that China also claims. Beijing described the patrol as “rights protection,” a phrase it commonly uses to justify operations in disputed areas. 

The operation came days after Japan’s Prime Minister Sanae Takaichi suggested that a Chinese attack on Taiwan could constitute a “survival-threatening situation” for Japan – language that could justify the use of collective self-defense and military intervention. Beijing responded with anger, demanding Tokyo retract the remarks and summoning Japan’s ambassador in protest.

The latest Chinese patrol marks one of the more visible demonstrations of Beijing’s displeasure. Japanese officials lodged a fresh diplomatic complaint, calling the Coast Guard’s activities a violation of Japan’s sovereignty.

Further complicating relations, China issued a warning urging its citizens to avoid traveling to Japan. Although Beijing did not explicitly link the advisory to political tensions, the move closely followed Takaichi’s comments on Taiwan.

Japan’s government said it has “strongly asked” China to take appropriate steps and clarify its stance, expressing concern that the advisory could damage people-to-people ties at a time when diplomacy is already strained. Some Chinese airlines have since offered fee waivers or refunds for travelers cancelling trips to Japan.

The intensifying standoff comes as Japanese public opinion remains sharply divided over the country’s potential military role in a Taiwan crisis. According to a Kyodo News poll released on November 16, 48.8% of respondents support Japan exercising its right to collective self-defense if China attacks Taiwan, while 44.2% oppose such involvement.

At the same time, 60.4% back Prime Minister Takaichi’s plan to accelerate defense spending to 2% of GDP, reflecting growing concern about regional security even as voters disagree on how far Japan should go in responding to Chinese aggression.

Despite rising tensions with Beijing, Takaichi’s administration continues to enjoy strong domestic support, with approval ratings climbing nearly six points in the latest survey.

The convergence of maritime incidents, diplomatic warnings, and debates over defense policy underscores how delicate the China-Japan relationship has become. China’s actions around the Senkaku Islands, combined with its travel advisory and assertive reactions to Japanese political statements, signal a willingness to apply both hard and soft pressure.

For Japan, finding the right balance between strengthening national security and preventing further deterioration in relations with its largest trading partner remains a significant challenge.

As both nations adopt firmer postures – with China expanding military activities and Japan accelerating defense plans – analysts warn that the risk of miscalculation is rising. Without sustained dialogue, even routine encounters at sea or politically charged comments on Taiwan could push the region closer to crisis.

Author: Nia Kokhreidze

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Spain and China Strengthen Ties

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since the state visit of the Spanish Monarch to China. Throughout the visit, both countries emphasized the commitment to strengthening economic and diplomatic cooperation amid the tensions between China and Europe.

During the visit, Xi Jinping and Felipe signed the agreements concerning trade, science and technology, education, and language exchange. Both leaders announced cooperation in renewable energy, green technology, and Artificial Intelligence, which is crucial for Spain’s current energy transition. Xi Jinping noted that China is prepared to strengthen its strategic partnership with Spain.

​China remains Spain’s largest trade partner outside the EU, while Spain continues to be one of the key European partners for China. In 2023, bilateral trade exceeded $50 billion, and Chinese investments in Spain reached $1.7 billion. Xi Jinping underscored 50 years of diplomatic relations between the two countries and also added that the two nations have “respected and supported each other, contributing to each other’s success”.

King Felipe VI praised China’s role in Spain’s economic development and green transformation, noting that Chinese investments have played a vital part in Spain’s renewable energy and production. Amidst global trade tensions and the Ukraine war, Spain’s engagement with China is growing; Madrid has positioned itself as one of Europe’s most pragmatic partners with Beijing.

​Spanish Prime Minister Pedro Sanchez visited China six months earlier. He called for “more balanced relations between the European Union and China.” Madrid continues to cooperate in technology and trade while navigating EU concerns over security and market imbalances.

​The three-day visit included stops in Chengdu and Sichuan province, where Felipe attended the China-Spain Business forum and met Spanish companies operating in the region. The event’s goal was to showcase expanded business ties and joint ventures in green hydrogen and electric battery production.

​Global Times described China-Spain relations as “a model of International cooperation”, emphasizing the need for peace, trade, tourism, and cultural exchange. Over 40 Spanish companies are operating in Chengdu, and Sichuan Airlines recently launched a direct flight to Madrid.

​The visit underlines the challenge Europe faces, where several member states are establishing close ties with China. Previously, there was criticism from the US about Spain’s close ties with China, while Brussels is debating technology security. While Spain is deepening ties with China, Xi Jinping demonstrates his ability to influence trade and technology in Europe.

Author: Mariam Sanadze

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