Chinese President Xi Jinping on Wednesday offered Spain’s King Felipe VI a vision of partnership with “significant global influence,” as Beijing looks to gain Madrid’s backing within the EU in return for enhanced economic cooperation.
Meeting In Beijing
Felipe is the first Spanish monarch to make a state visit to China in 18 years, as Madrid leads the European Union in courting Beijing for fresh investment after U.S. President Donald Trump threatened to make Spain “pay twice as much” unless it increases its NATO contributions.
For its part, China is eager to move past trade frictions with the 27-member bloc over its heavily subsidised electric vehicle industry. In addition, tensions with the White House are weighing on its export-driven economy, prompting Chinese firms to seek new commercial hubs in regions like Latin America and North Africa – where Spain has longstanding ties.
Xi also raised the prospect of Chinese and Spanish firms “jointly exploring third markets such as Latin America,” state media reported.
Madrid has recently expanded its EU diplomacy, unveiling a program to boost supply chain cooperation with Japan and South Korea and strengthen trade with China.
Madrid Steps Up Economic Engagement
As Europe’s top pork exporter, Spain was hit when China imposed 62.4% tariffs on EU pork in September, retaliating against the bloc’s duties on Chinese EVs.
Spain abstained from a vote on the matter in October 2024.
Since then, Spanish Prime Minister Pedro Sanchez has lobbied for the tariffs to be removed and promoted the EU’s fourth-largest economy as an investment destination for China.
Spain sells China about $1.2 billion worth of meat and byproducts each year, accounting for roughly a fifth of China’s pork imports.
Last week, China proposed resuming investment talks with Spain. They had been frozen since 2021.
(With inputs from Reuters)
