China urges Spanish PM Pedro Sanchez to play 'constructive role' in China-EU trade disputes

Spain Prime Minister Pedro Sanchez is in China for a second visit in just over a year, with ongoing trade tensions between China and the European Union top of the agenda.

‌On Monday Chinese President Xi Jinping encouraged Sanchez to play a "constructive role" in resolving trade tensions.

‌"A trade war will benefit no-one," Sanchez said as both sides talked of dialogue and mutual respect.‌

Spanish media suggested Pedro Sanchez was positioning himself as a negotiator between China and the EU, El Mundo newspaper saying he arrives in Beijing as an 'interlocutor' aiming to "resolve differences" between the EU and China.

‌The relationship between Spain and China is strong after successful celebrations of 50 years of official diplomatic relations in 2023.

‌Both talked about deepening cooperation in areas such as artificial intelligence and the digital economy, and agreements were also signed on scientific research and green energy.

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China-EU relations

‌In the meeting with Sanchez President Xi said Beijing was willing to work with Brussels to develop a relationship where both maintain their independence while also "bringing benefits to the world."

"It is hoped Spain will continue to play a constructive role in this regard," Xi added.

Sanchez responded: "Spain wants to work constructively so that relations between the two are closer, richer and more balanced."

Speaking to China's Premier Li Qiang earlier in the day, Sanchez insisted that "we want to build bridges together to defend a trade order that's fair."

‌"We must work together to resolve differences through negotiation," Sanchez said.

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EU tariffs on Chinese EVs

The tensions between China and the EU bloc emerged from European Council tariffs imposed on Chinese EVs. The EU says Chinese car makers benefit from unfair state subsidies, something that China denies.

‌Provisional tariffs of between 17 and 38 percent have been imposed on Chinese-made EVs on top of a 10 percent levy already in place. China has responded with anti-dumping investigations into European brandy, pork, plastics and dairy products. 

Spain would be hit particularly hard if China decides to put tariffs on European pork – it exported $1.5 billion worth to China in 2023. On his trip to China Sanchez arrived with a big trade delegation, among them the heads of the Spanish pork industry.

‌Fears of a trade war, however, appear to be subsiding as experts say that while the EU's sanctions on Chinese EVs will sting, the bigger and better-structured companies will still be able to do business and turn a profit in Europe.

‌Asked about the impact the European Commission tariffs could have on Chinese car makers, Daniel Gros, director of the Centre for European Policy Studies, told CGTN:‌

"I think the impact will be limited. The cost advantage of the Chinese producers is so large that probably they can absorb them."

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