China is calling on Western countries to work to support multilateralism and open cooperation, President Xi Jinping told Spain’s Prime Minister Pedro Sánchez as Beijing attempts to get allies on side for its escalating tariff fight with the United States.
“The two sides should promote the building of a fair and reasonable global governance system, maintain world peace and security and promote common development and prosperity,” Xi told Sánchez, who is on a two-country tour of Asia, in Beijing.
The visit comes at a complex moment for Europe and China.
Tariffs announced last week and then paused by US President Donald Trump could push the European Union to pursue more trade with China, the world’s third-largest consumer market after the US and the EU.
Xi made no direct mention of Trump or the tariffs on Chinese imports, which now stand at 145%, referring only to the “multiple risks and challenges” facing the world that can only be dealt with through “unity and cooperation”.
Sánchez is making his third trip to China in two years as his socialist government seeks to boost investment from the Asian giant.
He is also expected to meet business leaders from several Chinese companies, many of which produce electric batteries or renewable energy tech.
After meeting Xi, Sánchez said Spain was in favour of “more balanced relations between the European Union and China, of finding negotiated solutions to our differences, which we have, and of greater cooperation in areas of common interest.”
“Trade wars are not good, nobody wins. And this is clear, the world needs both China and the United States to talk,” he said.
Warnings from Washington
But ahead of Sánchez’s trip, which also saw him visit Vietnam, US Treasury Secretary Scott Bessent slammed Spain for its move toward China.
Any country that attempts to cosy up to Beijing would be “cutting their own throat” because Chinese manufacturers will be looking to dump goods that they can’t sell in the US, Bessent said on Tuesday.
“Expanding the trade relations that we have with other countries, including a partner as important as China, does not go against anyone,” Spain’s Agriculture Minister Luis Planas said in Vietnam on Wednesday.
“Everyone has to defend their own interests,” Planas said.
Madrid leans toward Beijing
Spain, the eurozone’s fourth-largest economy and a leader in growth, has in recent years been less adversarial toward China than some other EU countries.
After initially supporting EU tariffs last year on Chinese-made electric vehicles over concerns that they enjoy unfair advantages, Spain abstained from voting on the proposal.
Planas insisted that Madrid’s approach to Beijing “contributes to the collective effort made by certain countries in the European Union to get out of this situation.”
While China’s investments in Spain have grown, Spain trades less with China than Germany or Italy.
Spain is a major supplier of pork to China, providing about 20% of its imports, according to Interporc, a Spanish association of pork producers.
“For us, China is the main market,” said Daniel de Miguel, the deputy director of Interporc.
Spain, which generated 56% of its electricity last year from renewable sources, needs Beijing’s critical raw materials, solar panels and green technologies, similar to other European countries transitioning away from fossil fuels.
In December, Chinese electric battery company CATL announced a €4.1 billion joint venture with automaker Stellantis to build a battery factory in northern Spain.
That followed deals signed last year between Spain and Chinese companies Envision and Hygreen Energy to build green hydrogen infrastructure in the country.
