Europe is seeking to distance itself from China, continuing its quest for economic and industrial autonomy that has been underway for several years, albeit with mixed results. Much like the United States, the European Union aims to reduce its dependency on Beijing in key strategic sectors and to curb China’s influence over the political and economic dynamics of the continent.
The most recent confirmation of this downward trajectory in bilateral relations is the corruption scandal that has engulfed Huawei in Brussels. The Chinese tech giant is at the center of a sprawling investigation stretching from the Belgian capital to Portugal, which has already led to the detention of four individuals accused of bribery and illicit lobbying to promote Huawei’s interests within European institutions.
According to early findings from the Belgian federal prosecutor’s office, and as further reported by the investigative outlet Follow the Money, lobbyists with ties to Huawei allegedly offered gifts – smartphones, tickets to football matches and other events, and travel perks – in exchange for political support, particularly in relation to the rollout of 5G infrastructure in Europe. The case reportedly involves more than 40 current and former members of the European Parliament. It brought an unsettling déjà vu two years after the infamous 2022 Qatargate corruption scandal that severely damaged the credibility of the Parliament.
The EU response to the new scandal was swift. Huawei lobbyists have been banned from all European Parliament and Commission premises. A week later ,DigitalEurope – one of the continent’s leading tech industry associations – also suspended the company’s membership. Yet beyond the judicial aspect, this scandal represents another symbolic step in the worsening relationship between Brussels and Beijing.
Huawei has long been the visible face of China’s growing – and controversial – presence in Europe. According to LobbyFacts, between 2018 and 2020, the company spent around $3 million annually on lobbying, later rounding that figure closer to $2 million, while maintaining a steady team of a dozen full-time lobbyists and holding numerous meetings with EU officials. However, this soft power strategy has begun to show its limits in the face of rising political distrust, especially as European attitudes toward China’s rising influence grow more cautious.
Although never definitively proven, suspicion remains that Huawei’s technologies could serve as backdoors for Chinese state surveillance. That fear alone has been enough to push several EU member states to limit the company’s role in strategic infrastructure. The latest scandal only reinforces this trend, as dozens of MEPs have now called for Huawei devices to be banned from institutional environments, mirroring earlier moves against TikTok, which MEPs were prohibited from downloading on work devices.
Within this broader context of EU concern about China, the role of the United States is anything but marginal. Washington has long exerted pressure on its European allies to align with its strategy of containing China, particularly in high-tech sectors. The chip war, export restrictions on sensitive technologies, and control over critical supply chains are just a few of the tools employed by the United States, which is urging Europe to take a firmer stance vis-à-vis Beijing.
The election of Donald Trump has further complicated the picture. On one hand, the new White House administration is expected to keep strategic competition with China at the center of U.S. foreign and trade policy, maintaining – and even tightening – existing export restrictions and tariffs. This in turn could pressure European companies to reduce their ties with China, fearing secondary sanctions or exclusion from transatlantic value chains. An example of such is Italy’s Pirelli, which, under governmental pressure and in anticipation of a tougher international climate, is seeking to curb the influence and access to sensitive data of Sinochem, the Chinese firm that holds a significant stake in the company. The move reflects a broader European trend toward de-risking relations with China.
On the other hand, Trump introduces a strong element of uncertainty into transatlantic relations. His unpredictable approach, combined with openly antagonistic rhetoric toward Brussels – including tariffs and criticism of NATO allies – could lead some European actors to reconsider their stance on China as a geopolitical counterweight. Indeed, despite ongoing tensions, the economic relationship between Europe and China remains significant. In 2023, China was among the EU’s largest trading partners, with total trade amounting to approximately 739 billion euros. Still, the balance is heavily skewed in China’s favor, which enjoys a trade surplus exceeding 290 billion euros.
In addition, the Chinese corporate presence in Europe remains vast, particularly in infrastructure, energy, and automotive sectors. Chinese direct investments in Europe amounted to 6.8 billion euros in 2023, according to data from Rhodium Group. Many of these investments have raised concerns over strategic dependency and technology ownership within the EU. Yet, against the backdrop of a volatile U.S. ally, Beijing may begin to be perceived once more as a more pragmatic and manageable economic partner – at least in certain European circles. However, this dynamic could further deepen internal divisions within the EU between staunchly pro-Atlantic countries and those more inclined toward an autonomous foreign policy course.
In this regard, one of the most contentious areas in China-EU relations remains electric vehicles. At the end of 2023, the European Commission launched an anti-subsidy investigation into Chinese automakers, suspecting them of benefiting from unfair domestic subsidies that allow them to undercut European competitors. The concern is that Beijing is flooding the European market with low-cost vehicles to quickly gain market share, thus weakening the local automotive industry.
In response, several Chinese companies – including BYD and SAIC – have accelerated plans to establish production facilities directly in Europe. This strategy is both political, aimed at presenting themselves as cooperative employers generating local jobs, and economic, seeking to bypass potential future tariffs and strengthen their foothold on the continent. BYD, in particular, has announced the construction of a major plant in Hungary – which could soon be under probe by the EU institutions – in a clear signal that China has no intention of relinquishing access to the European market.
In short, times are complicated and the future of China-EU ties seems difficult to predict. And while Huawei today stands as a symbol of an increasingly isolated China at the heart of Europe, it remains to be seen whether Europe’s economic pragmatism will withstand the shifting geopolitical order being altered by Trump’s Washington.