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"Chinese consumers, especially those born in the 1980s and 1990s, love living a quality life … they like traveling, caring about their individuality, and have different pursuits to match their lifestyle. More importantly, they love their cultural identity and are willing to show it," she said.

"China's territorial sovereignty should be the red line and absolutely nonnegotiable," Yuan said. If the US were to persist in poisoning cross-Straits relations, China would be less likely to cooperate with the US on some other issues, he added.

"China will have similar issues as Germany. China is not a cheap manufacture place anymore. It needs to transform to advanced manufacturing, and needs technology ... to make manufacture more flexible," he said.

"Chinese customers perceive high-tech as premium, so automakers have to invest more on in-car technologies to further enhance their brands," Deloitte Consulting (Shanghai) automotive industry partner Marco Hecker told China Daily in June.

"Currently, several EU states have their own processes to examine and clear foreign investments in certain sectors of national and strategic importance. The EU could consider doing these clearances at a central level to improve efficiency and clarity for investors," Saz-Carranza said.