Journalist and author Michael Sheridan has stated that Portugal's shift away from an intimate relationship with China is in line with a broader trend in the European Union.

He emphasized that this shift doesn't imply antagonism between the two nations but rather reflects a growing focus on risk reduction within the EU. Chinese investments have grown in Portugal, particularly in sectors like energy, banking, insurance, and health, amounting to approximately €11.2 billion in the country's economy.

In 2018, Portugal and China signed a memorandum of understanding related to the "Belt and Road" initiative. However, Portugal has now adopted a more cautious stance. This shift has been influenced by several factors, including a renewed emphasis on NATO, the presence of an active United States embassy in Lisbon, and growing concerns about national security, especially regarding 5G networks.

Portugal's decision to exclude Chinese companies from 5G network development was noted as one of the most extreme among European countries. Additionally, the absence of high-level Portuguese government visits to China, which used to occur regularly before the COVID-19 pandemic, signals a distancing in relations.

While Portugal maintains a strong cultural and historical connection with China, dating back to its presence in Macau, the government is now adopting a more transactional and realistic approach to its relationship with China. However, experts warn that any move perceived as protectionist or exclusionary by China could lead to retaliatory measures.

Sheridan concluded that Portugal's institutional memory and understanding of China's culture and policies, along with its historical ties, position it as an important player in European-Chinese relations. Photo by Ecow, Wikimedia commons.