China has intensified efforts to leverage its trade relations with the European Union by employing a strategy that experts describe as “divide and conquer,” as tensions rise over trade imbalances and regulatory measures. The approach was highlighted recently when Brussels initiated an anti-dumping investigation into Chinese imports of Pekin duck, a key ingredient in the well-known Peking duck dish, accusing Chinese producers of benefitting from state subsidies and subsequently flooding European markets.

In response, Chinese state-affiliated media criticized the EU’s move, suggesting that European producers were disadvantaged by high energy costs and fragile supply chains. This dispute forms part of a broader pattern as China’s trade surplus with the EU continued to grow sharply. After reaching €360 billion in 2025, the surplus increased by approximately 24% in the first half of 2026 compared to the previous year, underscoring Beijing’s expanding economic footprint in Europe.

Analysts note that China’s tactics include directly challenging the EU’s collective trade policies while simultaneously cultivating closer bilateral ties with individual member states and neighboring countries. By engaging with nations such as the United Kingdom and Morocco—both of which maintain access to the EU single market—China is seeking to build alternative channels for trade and investment. Chinese Commerce Minister Wang Yi’s recent visit to London reportedly yielded “extraordinarily constructive” discussions on investment cooperation, reflecting Beijing’s wider strategy to establish footholds beyond Brussels.

EU officials warn that this approach exploits the bloc’s structural complexity, with 27 member states sometimes divided over common trade policy responses. Joerg Wuttke, a partner at consultancy DGA Group, referred to this fragmentation as a persistent vulnerability China has long capitalized on. At the same time, some observers suggest the growing trade imbalances may ultimately drive deeper European integration in trade policy and economic coordination.

On the corporate front, European companies face challenges from China’s export restrictions, notably on rare earth elements critical for various industrial and technological applications. These controls have exacerbated difficulties amid ongoing tensions, affecting the supply chains of key sectors including renewable energy and automotive industries.

European policymakers express concerns about the bloc’s dependency on China for strategic materials and low-cost inputs. Željana Zovko, a member of the European Parliament’s trade committee, pointed to member states’ reluctance to unite on restrictive measures against China, contrasting it with their previous coordination to counteract U.S. tariffs. Observers also note China’s growing assertiveness following its perceived success in last year’s trade conflict with the United States.

Furthermore, China’s influence extends into investment flows, particularly in Morocco, which has attracted about $6 billion in Chinese investments since the pandemic, mainly in automotive supply chains that also serve European manufacturers. Meanwhile, the UK, which has historically diverged from the EU on trade policy towards China—including refraining from imposing tariffs on Chinese electric vehicles—has begun aligning more closely with Brussels on issues such as steel tariffs, signaling a gradual convergence on economic security related to Beijing.

Experts caution that Beijing’s overall strategy relies on patience, banking on internal divisions within the EU to delay unified responses. As economist Andrew Small of the European Council on Foreign Relations observed, while Europe may voice complaints about China’s trade practices, Beijing’s long-term plan appears to involve leveraging these fractures to maintain and expand its economic influence across the continent.