Europe has shifted its perception of China from a trade partner to a sophisticated competitor, European and expert officials said in late May 2026. Michael Koplovsky, senior adviser at Kreab International and former U.S. diplomat, described the change at the UBS Asian Investment Conference in Hong Kong on May 28. "A few years ago, China was viewed as a partner and a key market for European goods. Now Europeans are more skeptical and wary," Koplovsky said, noting the increased caution toward Beijing [1, 2].

Chinese companies have made rapid advances in strategic sectors like solar power, wind energy, batteries, and electric vehicles. These developments challenge European industries and have prompted regulatory pushback from Brussels [1, 2, 3, 4, 5]. Unlike the U.S., which frames the relationship as a strategic rivalry, the European Union primarily views it as economic competition, according to Koplovsky [1, 2, 3, 4, 5].

In May 2026, the EU banned the use of Chinese-made inverters in EU-funded energy projects, citing cybersecurity risks and dependency concerns. The European Commission also opened an investigation into Chinese e-commerce giant JD.com's planned €2.2 billion acquisition of German retailer Ceconomy over suspicions of unfair foreign subsidies [2, 3, 4, 5]. These actions reflect a broader tightening of trade regulations to protect European manufacturing.

To counterbalance China’s influence, the EU has diversified its trade partnerships this year by signing free trade agreements with India and Australia, forging a partnership with Mercosur in South America, and exploring membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) [2, 3, 4, 5]. EU officials acknowledge the post-World War II trade rules no longer apply. Koplovsky said, "The trade rules everyone followed since WWII are long outdated. Europe now understands it must put on a bulletproof vest" [5].

Trade data for 2024 shows the EU’s trade in goods and services accounts for 21.4% of its GDP, compared with China at 18.8% and the U.S. at 12.8%. This makes Europe vulnerable in a potential trade conflict with Beijing [2, 3, 4, 5].

The shift in Europe’s stance signals a turbulent new era in EU-China trade relations. Discussions and regulatory scrutiny are likely to continue through 2026 as Brussels works to bolster its defenses while managing complex global ties [2, 3, 4, 5].