The Czech capital Prague branded China "unreliable" and a “bully” as it scorned the economic might of Beijing to sign a partnership agreement with Taipei in a move seen as evidence of a cooling of attitudes in Europe towards the lure of Chinese investment.

Zdenek Hrib, the city’s mayor, signed the agreement increasing co-operation with the Taiwanese capital on Monday knowing that it could deepen Chinese anger with Prague.

The rift began when the Czech capital challenged a clause in an existing partnership agreement with Beijing requiring it to accept the “one-China” policy, which claims Taiwan as Chinese territory.

The challenge prompted Beijing to tear up the partnership agreement and to cancel planned tours of China by Czech orchestras.

“I think that all people should be aware that China is not a reliable business partner because it cancelled already arranged tours and cancelled contracts already signed just to bully the Prague orchestras,” Mr Hrib told The Telegraph. “The Chinese reaction has been hysterical.

“Partners should treat each other with respect but we had a partner that did not do that,” he added. “For example, they stopped responding to us. Why should you have a partner that won’t even speak to you?”