Spain strengthens China trade ties despite US opposition

Sánchez Pushes for Trade Diplomacy During Asian Tour

Spanish Prime Minister Pedro Sánchez has arrived in Beijing as part of his diplomatic tour of Asia, seeking to enhance economic cooperation with China amid a tense backdrop of global trade disputes. His visit follows a stop in Ho Chi Minh City, Vietnam, where he praised the recent pause in tariffs announced by the United States as an opportunity for renewed international negotiations.

“This truce is a gateway to negotiation and agreement between countries,” Sánchez said, referencing the 90-day suspension of tariffs imposed by the Trump administration—an exemption that notably excludes China.

Despite the gesture, Washington has expressed sharp disapproval of Spain’s engagement with Beijing. US Treasury Secretary Scott Bessent criticized Sánchez's move in an interview with Fox News, likening it to "cutting your own throat" and warning European nations that favoring China over the US would be “a losing bet.”

Sánchez is now the first European leader to visit China officially since the resurgence of tariff conflicts between the US and its global trading partners.

Spain-China Trade Grows Amid Structural Imbalance

Trade between Spain and China continues to expand, though significantly tilted in China’s favor. In 2024, Spain imported over €45 billion worth of goods from China, while its exports to the Asian country totaled just €7.4 billion, according to Spain’s Ministry of Economy.

China now stands as Spain’s fourth-largest trading partner and second-largest source of imports, but it ranks only twelfth as a destination for Spanish exports.

Spain imports a wide range of Chinese goods, including machinery, textiles, and consumer products, with automobiles and motorcycles also gaining traction in recent years. On the other hand, Spanish exports to China are mainly composed of chemicals, minerals, and industrial equipment. Currently, over 14,500 Spanish companies maintain business relationships with China.

“Only multilateralism and solidarity between nations can address these types of global challenges,” Sánchez said in Vietnam. “Spain defends a world with open doors—where trade unites our people and makes them more prosperous.”

Modest but Rising Bilateral Investment

While trade volumes remain heavily imbalanced, investment flows between Spain and China are slowly increasing. In 2023, Chinese investment in Spain totaled €131 million, compared to €91 million in Spanish investments in China. Though still relatively modest, both countries are exploring opportunities in key sectors such as technology, energy, and logistics.

These growing interests underscore a mutual desire to move beyond traditional trade frameworks and deepen cooperation in strategically significant industries.

Beijing Responds to Washington's Criticism

China was quick to respond to Washington’s objections. During a press conference on Thursday, Chinese Foreign Ministry spokesperson Lin Jian firmly defended Spain’s diplomatic approach.

“If we talk about ‘cutting each other’s throats,’ it is precisely the United States that, by abusing tariffs to threaten and blackmail the entire world, is trying to squeeze the necks of other countries,” Lin said. He further emphasized the economic importance of Sino-Spanish relations, citing a 4.3% increase in Spanish exports to China in 2024 and a total bilateral trade volume of over €44 billion.

In Madrid, Spain’s government stood by its position. Agriculture Minister Luis Planas affirmed the country’s intention to not only preserve but expand its trade relations with China, calling them “excellent.”

Amid the global recalibration of trade alliances, Spain’s diplomatic outreach to China signals a growing assertiveness within the EU to diversify partnerships beyond traditional Atlantic ties. As economic dynamics evolve, Madrid appears determined to chart its own course—one rooted in multilateralism and pragmatic engagement.

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