It's been five years since China's COSCO Shipping Company signed a deal with the ports of Bilbao and Valencia.

Despite a two-year global pandemic affecting supply chains across the world, maritime cargo trade has remained extremely important and looks set to increase.

The European Union is now China's largest trading partner for imports and its second-largest for the export market. In 2021, that amounted to a colossal $828 billion in bilateral trade.  

For cost-effectiveness, the preferred transport route is the sea, rather than rail or freight – so a partnership with Spain's largest ports makes logical sense, explains Miguel Otero, a professor of global and public affairs at Madrid's IE Business School. 

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It's not just about straightforward Sino-Spanish trade, but also "the connection that China has increasingly with other third countries," says Otero. 

He cites Spain's location – "in the Mediterranean, close to Africa, close to Latin America, and an entry point for a lot of Asian goods, and a way to get to Asia through our ports" – as making Chinese trade with the country "an important strategic relationship."

Constantly evolving Bilbao

The port of Bilbao is strategically placed to help trade – within Europe and also with ships arriving from all over the world. The port's operation is constantly evolving, allowing it to increase imports and exports to ensure a solid supply chain for the country, and placing it right at the heart of the regional economy.

Recent investment in three huge automated cranes has helped increase efficiency with a quicker turnaround. The port has also improved its shoreside infrastructure to make it greener and more sustainable.

Bilbao helps serve Shanghai, Ningbo and Tianjin to make China the second most important country for the flow of containerized traffic to its port, just behind the UK.

For Otero, good long-term planning was key to good business links.

"Trade depends on stability, and mid-to-long term clear infrastructures, clear logistics, supply lines, supply chains, and therefore a long-term commitment of China is crucial for a lot of exporters and importers in Europe that do business with China," he said.

This partnership has worked both ways – Spain exported over $12 billion worth of goods to China last year. That's more than doubled since 2015.

Historic ports like Bilbao will certainly continue to play their part to boost business between the world's two biggest trading blocs, China and the European Union.