China's mammoth trade surplus with Europe as well as challenges faced by foreign firms in the country are incentivising Brussels to adopt more "offensive" policies, a business lobby warned Wednesday.

The report by the European Union Chamber of Commerce in China underscores the turbulence in economic ties between the key trading partners, as they navigate heightened uncertainty sparked by Beijing-Washington tensions.

Data this week showed that China's global exports in the first 11 months of the year outpaced imports by more than $1 trillion, reaching the historic milestone even before December.

A significant portion of that surplus was generated by shipments to the European Union, which last year ran a trade deficit with the country of more than $350 billion.

China is "continuing to ex

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