Portugal’s Dueling Parties Both Want More Chinese Investments

Europe’s biggest economies have grown increasingly wary of Chinese investments, fearful of becoming too reliant on Beijing in critical industries like automaking.

Not in Portugal, where the two political parties vying to lead the government are rolling out the welcome mat.

With a general election set for Sunday too close to call, both sides are backing a $2.2 billion lithium battery plant being built by CALB, a manufacturer partly owned by the Chinese state. Earthworks began this month near Sines, a deep-water port on the southwestern coast.

The incumbent PSD party says the factory will put Portugal at the ...