China’s foreign trade landscape is undergoing a profound structural realignment, with commercial ties to the developing world accelerating at a remarkable pace while its traditional economic relationship with Europe enters a phase of relative deceleration.This shift is driven by the maturation of the Belt and Road Initiative, strategic supply chain diversification and, most critically, rising scrutiny of trade with China from the European Union.In the first half of the year, trade between China and belt and road partner countries rose by 14.8 per cent year on year to about US$1.9 trillion, accounting for 50.9 per cent of China’s total foreign trade. Trade with neighbouring countries jumped 20.6 per cent, while bilateral flows with Latin America and Africa grew 16.2 per cent and 19.6 per cent respectively.Against this backdrop, trade with the EU grew by a comparatively tepid 10.2 per cent, signalling a marked slowdown in its overall weighting. Even trade with Central and Eastern European countries, despite an 11 per cent rise extending a decade-long streak, remains below the average for non-European developing regions, underscoring the gravitational pull of Asia, Africa and Latin America.The primary catalyst for this tectonic shift is the EU’s escalating pivot away from China, which has transformed the bloc from a once reliable free-trade partner into a fortress of regulatory barriers, countervailing duties and geopolitical conditionality.Brussels has imposed anti-subsidy tariffs on Chinese electric vehicles of up to 38 per cent, alongside investigations into solar panels, wind turbines and railway rolling stock. The new Foreign Subsidies Regulation grants the European Commission sweeping powers to probe and penalise non-EU firms receiving state support, injecting legal uncertainty into long-term contracts.
Opinion | As the EU erects barriers, China’s trade tilts south and east
Europe’s importance in China’s trade calculations is shrinking as Beijing prioritises the Global South, Southeast Asia and the Middle East.








