Pedro Sánchez, the Spanish Prime Minister, has recently urged China to address the “unsustainable” trade imbalance with the European Union. He warned against the potential social unrest and isolationist tendencies that could arise in Europe if this issue is not rectified.
Call for Economic Cooperation
During his speech at Tsinghua University, Sánchez emphasized the need for China to open up further to European trade. He stated, “The European Union is doing its part. We need China to do the same, so Europe does not have to turn inward.” The EU, he noted, requires China’s assistance in correcting the trade deficit that has expanded by 18% in the past year, which is deemed unsustainable in the long run.
Spain’s Trade Deficit with China
The current trade deficit with China accounts for 74% of Spain’s total trade deficit. Sánchez highlighted the detrimental effects this situation has on social conditions and the growing sentiments of resentment within Europe.
This visit marks Sánchez’s fourth trip to China in four years. It reflects his ambition to act as a mediator between Beijing and the EU amid rising tensions with the United States. Earlier this year, former President Donald Trump threatened to cut trade ties with Spain when it declined to allow the use of its military bases for actions against Iran.
Strengthening Bilateral Relations
During his tenure, Sánchez has sought to improve relations with China. His upcoming meeting with Chinese President Xi Jinping is part of this effort. European leaders are increasingly concerned about the extent of the trade deficit and the influx of low-cost Chinese goods in their markets.
- Spain’s trade deficit with China reached €42.3 billion in 2025.
- Spanish exports to China rose by 6.8% in 2025, supported by strong ties with Beijing.
- Prior to Sánchez’s 2025 visit, China agreed to expand market access for certain Spanish products.
One of the main objectives of Sánchez’s trip is to secure better access to the Chinese market for agricultural and industrial products. Additionally, he aims to explore joint contracts in technology while attracting new investors to Spain.
Spain’s Appeal to Chinese Investors
Spain is viewed favorably by Chinese investors due to its robust economic growth and comparatively low energy costs. Analysts suggest that China finds Spain to be a more “friendly” country, which facilitates independent decision-making outside of broader European agreements.
Furthermore, Spain is regarded as a gateway to Europe, Latin America, and North Africa. This reputation could enhance trade opportunities, presenting a strategic advantage in bilateral relations with China as both nations seek to strengthen their economic partnerships.
