Trade continues to be the least problematic aspect of the EU-China economic relationship. The BRI offers potential trade gains for Europe by improving physical connectivity with countries along the route to China, but it also poses challenges for the EU. While Chinese investment in Europe is growing and has focused strongly on technology, it raises the question of whether the EU should fear losing its technological edge, especially when Chinese state-owned companies might distort competition through foreign acquisitions.

A new ERAI report touches upon the Germany’s imports from China and prospects of the modal shift to railways. Over the past five years, China has been the main trading partner of Germany.