China and Spain Deepen Practical Cooperation in Autos, Energy, and Tourism Amid Broader EU-China Trade Frictions

Recent statements by Chinese and Spanish leaders about strengthening cooperation are not just talk; they are built on a solid foundation of existing practical collaboration.

This cooperation spans key sectors like electric vehicle batteries, auto manufacturing, clean energy, logistics, and a significant rebound in tourism driven by visa-free policies.

These deep-rooted economic and cultural ties give both countries a strong incentive to maintain stable relations and advocate for multilateralism, even as trade tensions between the EU and China rise.

The recent message of “mutual trust” from leaders in China and Spain is much more than just diplomatic pleasantry; it's a reflection of deep and practical cooperation already underway.

This partnership is most visible in major industrial projects. For instance, a massive €4.1 billion gigafactory for electric vehicle (EV) batteries is being built in Zaragoza by Chinese battery giant CATL and auto conglomerate Stellantis. In Barcelona, Chinese automaker Chery has partnered with Spain's Ebro to start producing cars at a former Nissan plant. These projects represent a significant industrial bridge between the two nations, creating jobs and integrating supply chains. Beyond autos, Chinese capital is also flowing into Spain’s green transition, highlighted by China Three Gorges' purchase of one of Europe's largest solar plants.

But the ties aren't just industrial. They are also about people and culture. China has extended its visa-free entry policy for Spanish citizens, leading to a surge in tourism. In 2024, Chinese tourist arrivals in Spain jumped by over 66%, with spending exceeding €1.8 billion. This is supported by an increase in direct flights, connecting cities like Madrid and Guangzhou, and symbolic gestures like the arrival of a new pair of giant pandas in Madrid.

So, why is this message of cooperation being emphasized right now? Several recent events provide the context. First, Spanish Prime Minister Sánchez's recent visit to China set a constructive tone, calling for openness to avoid a trade war. Second, this call comes as Spain faces a growing trade deficit, making stable access to the Chinese market more important. Third, this dialogue is happening against the backdrop of ongoing EU-China trade disputes, particularly over pork exports, where Spain is a major player. China recently finalized anti-dumping duties on EU pork, a move that directly impacts Spanish exporters.

In essence, the relationship is a balancing act. While navigating the complexities of EU-wide trade policy, Spain and China are leveraging their strong bilateral ties in manufacturing, energy, and tourism as a foundation for stable and predictable engagement. This practical cooperation gives both sides a compelling reason to advocate for a rules-based, multilateral approach rather than escalating trade conflicts.

Gigafactory: A very large factory that produces batteries, typically for electric vehicles, on a massive scale (measured in gigawatt-hours, GWh).
Multilateralism: The principle of participation by three or more parties, especially by the governments of different countries, in international affairs. It emphasizes cooperation and shared decision-making.
Anti-dumping duties: Tariffs imposed by a country on imported products that it believes are priced below fair market value (a practice known as "dumping"). These duties are meant to protect domestic industries from what is seen as unfair competition.

China and Spain Deepen Practical Cooperation in Autos, Energy, and Tourism Amid Broader EU-China Trade Frictions

Recent statements by Chinese and Spanish leaders about strengthening cooperation are not just talk; they are built on a solid foundation of existing practical collaboration.

This cooperation spans key sectors like electric vehicle batteries, auto manufacturing, clean energy, logistics, and a significant rebound in tourism driven by visa-free policies.

The recent message of “mutual trust” from leaders in China and Spain is much more than just diplomatic pleasantry; it's a reflection of deep and practical cooperation already underway.

Gigafactory: A very large factory that produces batteries, typically for electric vehicles, on a massive scale (measured in gigawatt-hours, GWh).
Multilateralism: The principle of participation by three or more parties, especially by the governments of different countries, in international affairs. It emphasizes cooperation and shared decision-making.
Anti-dumping duties: Tariffs imposed by a country on imported products that it believes are priced below fair market value (a practice known as "dumping"). These duties are meant to protect domestic industries from what is seen as unfair competition.