Over the past week, leaders of Malaysia and Indonesia renewed their commitment to the Belt and Road Initiative (BRI) and extended welcomes to Chinese investment. This came amid growing scrutiny from the United States and the European Union regarding Chinese investments in South Asia, particularly those linked to the BRI.

In an interview yesterday, U.S. Trade Representative Katherine Tai addressed questions related to China building factories in Mexico for exporting to the United States, as well as the possibility of Brazil joining the BRI.

After CFIUS approved a property purchase related to a Chinese company starting a wind farm project near an Air Force training base, the state of Texas took action that prohibited certain renewable energy investments by the company. The Chinese company is now challenging the Texas actions as unconstitutional.

China's 2023 report on foreign direct investment (FDI) revealed that Chinese investment reached US$177.29 billion last year, with the majority going to Asian countries, while FDI in the EU and the U.S. dropped.

A Chinese-owned company that makes security equipment tried to challenge a European Commission search of its European offices in a case related to an investigation of subsidies, but the EU General Court has rejected its claim.

Chinese and Italian companies have recently signed agreements in the solar, wind, and EV sectors, following Italian Prime Minister Giorgia Meloni's China trip.

The Chinese battery and solar sectors are under pressure from domestic competition, regulatory tightening, and external scrutiny. Some companies are looking outward, but that option also presents difficulties.