Spain’s Prime Minister Pedro Sánchez recently visited China to strengthen the close bilateral relationship between the two countries. Sánchez aims to bolster economic and trade ties as well as support Spanish culture, education, and science in China. During his visit, he met with top Chinese officials including the president Xi Jinping and prime minister Li Qiang. Sánchez also attended various forums and meetings with business leaders from both countries. His visit comes at a crucial time as the EU has imposed provisional tariffs on Chinese electric vehicles due to alleged unfair government subsidies benefiting Chinese firms.
The European Commission believes that Chinese companies receive government subsidies that allow them to keep their prices artificially low, putting them at an advantage in the market. As a result, the EU imposed provisional tariffs on Chinese electric vehicles in July, with a vote coming up in October to make the tariffs permanent. China has retaliated by filing a complaint with the World Trade Organization, arguing that the tariffs are unfair and harm the electric vehicle industry’s development rights. Additionally, China has initiated an anti-dumping investigation into imported pork and pork by-products from the EU, potentially leading to trade restrictions on a sector crucial to the EU, particularly Spain.
Spain is the largest pork exporter in Europe, and in 2023 alone, it supplied China with around 22% of its imported pork, totaling €1.2 billion in trade. The potential trade restrictions from China could have significant impacts on Spain as well as other EU countries like the Netherlands, Denmark, Germany, and Belgium. The European farmers association has denied engaging in anti-dumping practices and called for a fair resolution to the trade dispute. These recent developments have added strain to the relationship between the EU and China, making Prime Minister Sánchez’s visit even more crucial in navigating these issues and maintaining strong ties between the two regions.
In response to the tariffs on Chinese electric vehicles, China has taken action through the WTO dispute settlement mechanism to protect its industry’s development rights. The tariffs are seen as a barrier to fair competition and have sparked tensions between the EU and China in the trade sector. Prime Minister Sánchez’s visit to China aims to address these challenges and foster cooperation and mutual trust through high-level exchanges. The meetings with top Chinese officials and business leaders are crucial in finding common ground and resolving trade disputes to benefit both parties.
During his visit, Sánchez inaugurated the 9th Spain-China Forum and attended a meeting of the Business Advisory Council, which included companies from both Spain and China. These forums provide a platform for dialogue and collaboration between businesses from the two countries, promoting trade and investment opportunities. Sánchez’s visit underscores the importance of maintaining strong political and economic ties between Spain and China amidst the ongoing trade disputes and uncertainties in the global market. By engaging in high-level discussions and seeking cooperation on global challenges, both countries can work towards a more stable and mutually beneficial relationship.
Overall, Prime Minister Sánchez’s visit to China comes at a crucial time for EU-China relations, with trade disputes and tensions impacting various sectors. By strengthening political and commercial ties, promoting cultural exchange, and fostering cooperation between businesses, Sánchez aims to navigate the challenges and find common ground for future collaboration. The delicate balance of managing trade disputes while promoting mutual trust and cooperation will be key in ensuring a stable and prosperous relationship between the EU and China. Prime Minister Sánchez’s visit serves as a critical step in this process, highlighting the importance of diplomacy, dialogue, and partnership in resolving complex trade issues and advancing bilateral relations.
