Rubio Urges Portugal and Europe to Reduce Dependence on China

US Secretary of State Marco Rubio said Portugal and the rest of Europe should not rely on a single country such as China for key goods, as Washington seeks to limit Beijing’s influence in strategic sectors.

“We think it’s not good for us, Portugal or for any country in the world,” Rubio said Thursday in response to a question on whether he was concerned about China’s presence in Europe.

“We think there needs to be diversity,” he added, speaking at a joint press conference with Portuguese Foreign Minister Paulo Rangel in Lisbon — the final stop on a trip that also included stops in Iceland and Greece.

The issue is especially sensitive in Portugal, where Chinese groups have amassed major holdings in some of the country’s most strategic companies. China Three Gorges holds 22.2% of utility EDP, State Grid owns 25% of power-grid operator REN and Fosun has 20.45% of Banco Comercial Português, the country’s biggest listed lender.

China is also one of Portugal’s largest foreign investors, with Chinese foreign direct investment valued at about €12.1 billion ($13.5 billion) at the end of 2024, according to Bank of Portugal data.

Successive Portuguese governments have welcomed Chinese capital even as other European countries have become more cautious about Beijing’s role in strategic industries.

Rangel, who called the US a “great ally,” said Portugal’s relationship with China dates back more than 500 years and that Chinese investment in the southern European country complies with current and any future European Union rules.

The EU is exploring new rules to reduce the bloc’s reliance on China, including steps to diversify supply chains and tighten scrutiny of Chinese investment. It has also proposed measures aimed at favoring European companies for public contracts.

Read More: EU Targets China With ‘Made in Europe’ Public Contract Rules

The US and Portugal also have strong defense ties. The US maintains a long-standing military presence at Lajes Field in Portugal’s Azores islands, a strategically located air base used to support American and allied operations across the Atlantic. Portugal recently granted Washington conditional approval to use Lajes to support US operations in the Iran war.

The Middle East conflict came up during talks in Lisbon between Rubio and Rangel. Portugal has backed diplomatic efforts to prevent Tehran from acquiring a nuclear weapon while stressing that it is not a party to the war.

US President Donald Trump has criticized European nations for not doing enough to help the US in its war against Iran.