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Analysts said the decline could be even deeper in the whole year, considering a high comparative base last December due to the rush to take advantage of a purchase tax discount.

An overhaul of the two sites was requested and their operators asked to deliver a written report on their rectification and improvement, the administration said. Further actions were pending.

And Yu contended that the initiative is not an attempt by China to exert its economic and political influence globally.

Andrés Ortega, senior research fellow, Real Instituto Elcano, said: “China’s controlled but ongoing globalization is essential for economic development. The US is pulling back, but not the rest of the world, with the effect being a loss of jobs and salaries. We need to recover multilateral, not unilateral, control on globalization and to make it more inclusive.”

Analysts argued that the immediate goal of Volkswagen's new partnership is to meet the government's demand, as it is stipulated in the deal that Volkswagen will enjoy priority if it needs to buy credits from the joint venture.