Small states, despite their power deficits, are able to influence large states. This paperexplores how Portugal appears to have selected strategies to modulate yet improve itsrelations with China during the Covid19 pandemic. According to the Theory of AsymmetricalNegotiations (TAN) advanced by Habeeb, small states adopt soft strategies when they havehigh levels of commitment, worse alternatives available to them, and a low degree of control.During the pandemic, an increase in deficits drove Portugal’s government to seek to expandexports, attract investment, and improve its competitiveness. The authors find that Portugalhas exhibited different behaviour regarding commitment, seeking alternatives, and exertingcontrol in issues related to investment, export, and competitiveness. Portugal has flexibly employed soft strategies towards China during the pandemic, while reacting to externalintervention from the US and maintaining internal compliance within the EU. With thesestrategies, Portugal has successfully, and without conflict, defended its interests, maintainedits EU status, and limited the intensity of competition between the US and China regardingPortugal.