Sánchez will embark on a new round of visits to China later this week. For Madrid, this is not just a routine bilateral visit but rather a concentrated bet on the diverging European policies towards China, the reshuffling of global trade patterns, and the needs for Spain's industrial upgrade. Official information indicates that Sánchez will visit China from April 11 to 15, meeting with the Chinese President, Premier, and Zhao Leji, Chairman of the Standing Committee of the National People's Congress. This marks his fourth visit to China since March 2023, and last November, King Felipe VI of Spain also made the first state visit to China in 18 years, demonstrating Spain's relatively frequent high-level contacts with Beijing within the EU.
Visit Signals
The market's interest in this visit is not only due to its frequency but also because Spain is trying to position itself as a more pragmatic communicator between Europe and China. Reuters reported last April that during his previous tour in Asia, Sánchez sought to present Spain as an "interlocutor" or communication bridge between China and the EU; in September of the same year, he publicly urged the EU to reconsider imposing tariffs on Chinese electric vehicles, stating that Europe and China "do not need another trade war." This stance does not fully align with the EU's broader focus on "de-risking," making Madrid appear more autonomous within Brussels.
Three Major Economic and Trade Headlines
Judging by the announced projects and the outcomes of the past two visits, Sánchez's most practical economic and trade goal this time is to continue attracting Chinese investment into Spain's advanced manufacturing sector. CATL and Stellantis have already launched a 4.1 billion euros battery plant project in Aragón; Reuters also reported that Spain is considered one of the leading candidates for BYD's third car factory in Europe. For Spain, these investments are crucial not only for localizing the electric vehicle supply chain but also for securing a place in the EU's new industrial competition.
The second main theme is green energy cooperation, particularly in green hydrogen and related equipment manufacturing. Envision Energy plans to sign an agreement with Spain in 2024, investing 1 billion dollars to build an electrolyzer plant and promote cooperation in green hydrogen, e-methanol, and related infrastructure; in the same year, HyDeal Ambition announced a 2 billion euros investment in Andalusia for a green hydrogen project. For Spain, these collaborations align with its long-term strategy of using wind and solar resources to build a European green hydrogen hub; for Chinese companies, they offer an entry point into the European energy transition chain.
The third main theme is agricultural trade, particularly in advantageous categories such as pork. In April last year, China and Spain signed two agricultural trade protocols covering pork and cherries; earlier, Reuters reported that amid the EU's plans to tax Chinese electric vehicles, Spain, as a major pork exporter to China, faced increased exposure, with pork-related exports to China reaching 1.5 billion euros in 2023. Thus, Sánchez's efforts to ease Sino-European economic and trade tensions are not just diplomatic gestures but directly linked to the real interests of Spain's agriculture and food industry.
EU Variables
However, Spain's pragmatic approach to China does not come without constraints. At the EU level, there remains widespread concern about trade imbalances, dependency on critical minerals, and China's relationship with Russia. Reuters pointed out last November that the EU as a whole remains cautious about economic engagement with China, and Beijing's signaling of investment and cooperation to friendly member states like Spain makes it harder for the EU to form a unified stance. Therefore, Sánchez's trip is more likely to continue the strategy of "strengthening economic and trade ties, avoiding confrontation, but not deviating from the EU framework" rather than unilaterally aligning with Beijing.
