Spain to find remedy to avoid trade war over EVs
Wrapping up a four-day visit to China, Spanish Prime Minister Pedro Sanchez emphasized on Wednesday that his country will be constructive and try to find a solution between China and the European Commission to avoid a potential trade war over electric vehicles and other issues.
"I have emphasized we do not want a trade war, as it would benefit no one," Sanchez said at a news conference in Kunshan, Jiangsu province, pledging Spain's efforts to "build bridges" and find compromises through negotiation amid existing tensions.
Sanchez reiterated Spain's advocacy for open trade between Europe and China based on multilateral norms provided by the World Trade Organization for trade conflicts, with negotiated resolutions to conflicts that address the legitimate interests of both parties.
"I must say (Chinese EV) is truly advanced," Sanchez remarked, saying he had an opportunity to sit in and drive a Chinese EV during his visit. "I believe the major European brands have a lot to learn from the technology and advancements made by Chinese brands in EVs."
"One of my main objectives during this visit was also to attract Chinese investment to Spain so that this Chinese investment can also establish itself in the form of a value chain in our country," he added.
Sanchez said his second visit to China in less than two years demonstrated the two countries' shared commitment to maintaining regular high-level dialogue.
"I believe this visit has helped bring us closer to a key partner, opening doors for stronger cooperation in areas of mutual interest," Sanchez stated.
During his stay, Spain and China inked eight agreements spanning trade, investment, culture, education, science and green development. Sanchez said this spirit of cooperation transcends the bilateral relationship between Spain and China and extends to the European Union.
Economic ties
Economic and commercial ties were the central focus. Sanchez met with Spanish companies operating in China and conveyed Spain's aim to consolidate trade and investment growth, especially in innovative and eco-friendly industries.
He cited the example of the newly signed deal with Chinese green technology company Envision Group for building a zero-carbon hydrogen industrial park in Spain through an investment of nearly 1 billion euros ($1.1 billion), creating about 1,000 jobs, both direct and indirect.
However, the prime minister acknowledged that Spain and the EU's trade deficits with China were a concern. To that end, Sanchez said Spain and China have agreed to establish a permanent mechanism for cooperation and dialogue on trade and investment issues.
He also prioritized bolstering cultural, educational and scientific ties during his visit, areas he considers vital given both countries have a rich heritage and excellent prospects.
Sanchez said Spain considers China as a key partner in addressing major international issues such as climate change and development financing.
"China and the EU play a central role in addressing these challenges, and while differences may arise between us as naturally can happen between friendly partners, I believe that the common points are more important and far outweigh the divergences," Sanchez remarked. "Therefore, we must continue to cooperate."