Europe No Longer Views China as a Partner, Trade Relations Enter a Turbulent New Era

As China's role has evolved from a preferred customer to a sophisticated competitor, trade relations between Beijing and Brussels have entered a turbulent new era. The South China Morning Post reported today that Michael Koplovsky, a senior advisor at Kreab International, noted that Chinese firms face stricter scrutiny in the EU market as the bloc pushes for trade diversification and considers robust measures to protect domestic industries. Koplovsky stated at the UBS Asian Investment Conference that while China was once viewed as a partner, Europeans are now increasingly suspicious and cautious. This shift is partly due to China's rapid development in strategic sectors like solar, wind, batteries, and EVs. The EU has launched a series of investigations into alleged unfair trade practices by Chinese firms and introduced new regulatory barriers. Earlier this month, the EU banned the use of Chinese-made inverters in EU-funded projects citing cybersecurity risks. Meanwhile, the European Commission is investigating JD.com's proposed acquisition of German retailer Ceconomy. Koplovsky noted that the EU's defensive stance stems from its higher vulnerability to trade wars compared to the US and China. Europe is now actively building a network of trade partners, including recent agreements with India and Australia.