Spanish Prime Minister Pedro Sánchez is set to meet with Chinese President Xi Jinping and other top officials on Monday, marking his second trip to Chine in just over a year. This visit comes amidst a tense backdrop of trade disputes, particularly over electric vehicles (EVs), reports AP News.

Trade Tensions and Electric Vehicles

The tension between Spain and China has been brewing over the EU’s proposed 36.7% tariff on Chinese electric vehicles. Spain, along with other EU members, has backed this tariff, which has led to retaliatory measures from China, including an investigation into EU pork imports. This trade spat highlights the growing importance of the EV market and the competitive dynamics between L'Europe and China.

Sánchez’s Agenda in China

Sánchez’s visit is packed with high-level meetings and business events. He will attend a business forum in Beijing for Spanish and Chinese companies, followed by a trip to Shanghai. The prime minister will also inaugurate a Cervantes Institute, which promotes Spanish language and culture. Before meeting with Xi, Sánchez will hold talks with his Chinese counterpart, Li Qiang, and the head of the ceremonial legislature, Zhao Leji.

The Role of Chery in Spain

Despite the trade tensions, Spain has welcomed the plans of Chinese carmaker Chery to open an EV plant in Barcelona. This move underscores the strategic importance of the EV market for both countries. Chery’s investment in Spain could potentially create jobs and boost the local economy, while also advancing Spain’s position in the global EV market.

The Pork Trade Dispute

The trade dispute over pork is another layer of complexity in the Spain-China relationship. EU exports of pork products to China peaked at $7.9 billion in 2020 but have since declined, with Spain accounting for almost half of last year’s $2.6 billion in exports. The pork trade dispute is a reminder of the interconnectedness of global trade and the potential for retaliatory measures in response to tariffs.

EVXL’s Take

The ongoing trade tensions between Spain and China highlight the growing importance of the electric vehicle market. As countries around the world invest in EV technology, it’s clear that this sector will play a crucial role in shaping the future of global trade. Despite the current disputes, the potential for collaboration and innovation in the EV space is immense. For more insights on the EV market, check out our recent articles on Tesla.

The escalating trade tensions between China and the EU highlight the complex interplay between economic interests and environmental goals in the global EV market. As we’ve seen in recent developments, the EV industry is becoming increasingly competitive and globally significant. This dispute underscores the need for international cooperation and fair trade practices to ensure the continued growth and innovation in the EV sector, which is crucial for addressing climate change. The outcome of recent investigations into tariffs could have far-reaching implications for the future of EV manufacturing and trade worldwide.

Moreover, the resilience demonstrated by Chinese EV makers in the face of global trade restrictions highlights the industry’s adaptability and the strong demand for electric vehicles worldwide. Chinese manufacturers are not only expanding their production capabilities but also forming new partnerships, such as Chery Auto’s agreement to build its first European factory in Spain. This adaptation, combined with the anticipated shifts in market dynamics due to varying tariffs imposed on different Chinese EV makers, positions them strategically to keep pushing forward in both European and global markets. We encourage readers to stay tuned to these developing stories in the EV landscape.

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