Madrid, October 4 — Spain-China Relations Intensify, Raising Concerns Within EU
Bilateral cooperation between Spain and China has intensified in recent years, particularly in the sectors of trade, infrastructure, and technology, according to Spanish government data. This development has drawn concern from several European Union member states, who view the growing alignment as potentially undermining EU cohesion on China policy. In 2023, bilateral trade between Spain and China reached €42.8 billion (approximately US$46.5 billion), marking a 12% increase from the previous year. Spanish exports to China grew to €14.2 billion (about US$15.4 billion), driven by agricultural products, pharmaceuticals, and automotive components, while imports from China totaled €28.6 billion (roughly US$31.1 billion), dominated by electronics, machinery, and textiles. The two countries signed a joint action plan in 2022 to strengthen collaboration in renewable energy, digital transformation, and audiovisual co-production. Spanish state-owned renewable energy firm Acciona participated in multiple wind and solar projects in China valued at over €1.8 billion (about US$1.96 billion). In 2023, Spain became the first EU country to join China’s Belt and Road Initiative through a memorandum of understanding focused on port logistics and maritime cooperation, particularly involving the Port of Valencia and the Port of Barcelona, which handled over 5.2 million TEUs combined in 2022. Chinese investment in Spain has also risen, with Chinese firms acquiring stakes in Spanish infrastructure, including a 2021 purchase by State Grid Corporation of a 25% share in the operator of Spain’s natural gas grid, Enagás, valued at approximately €1.3 billion (about US$1.41 billion). Meanwhile, Chinese tech companies such as Huawei and ZTE have expanded their research and development presence in Spain, employing over 1,200 engineers in Madrid and Barcelona as of 2023. These developments have prompted concern among EU officials, particularly in Germany and France, who argue that Spain’s bilateral engagement with China complicates efforts to establish a unified European approach to technology security, market access, and human rights dialogues. Spanish officials, including Foreign Minister José Manuel Albares, have defended the country’s approach as pragmatic and sovereign, emphasizing that engagement with China does not preclude alignment with EU values, and noting that Spain continues to participate in EU-led initiatives such as the Global Gateway, which aims to mobilize up to €300 billion (about US$326 billion) in sustainable infrastructure investments globally by 2027. The deepening ties reflect Spain’s broader foreign policy shift toward diversifying economic partnerships beyond traditional European allies, a trend accelerated after the 2008 financial crisis and further influenced by energy security concerns following Russia’s invasion of Ukraine in 2022. Looking ahead, the EU will continue to grapple with the balance between maintaining strong economic ties with China while ensuring alignment on values and security concerns with its member states. The ratification and implementation of the EU-China Comprehensive Agreement on Investment (CAI), which remains stalled, will be a key factor in this equation.
