Xi Jinping Urges Spain to Foster China-EU Relations Amid Trade Tensions

Chinese President Xi Jinping asked Spanish Prime Minister Pedro Sanchez to help improve China-EU relations during their meeting. Both leaders discussed deepening trade ties in sectors like AI and new energy. Sanchez aimed to avoid a trade war over EU tariffs on Chinese EVs while looking for cooperative resolutions.

Chinese President Xi Jinping on Monday asked visiting Spanish Prime Minister Pedro Sanchez to play a 'constructive role' in mending the tense relationship between Beijing and the European Union. Sanchez expressed hope that the EU could avoid a trade war with China, even as the European Commission considers imposing tariffs on Chinese-made electric vehicles.

During their meeting, Xi highlighted the potential for expanding commercial ties between China and Spain in areas such as artificial intelligence, the digital economy, and new energy. Xi emphasized that Beijing hopes to work collaboratively with Brussels to develop a China-EU relationship characterized by mutual independence, autonomy, and shared success. 'It is hoped Spain will continue to play a constructive role in this regard,' Xi added.

Earlier, Sanchez addressed business events, advocating for negotiated solutions to the EV tariff dispute through the World Trade Organization. China recently announced a retaliatory anti-dumping probe into European pork imports and dairy subsidies, escalating the tension between the two economic powers. While Spain exported significant amounts of pork and dairy products to China, Sanchez remains committed to seeking fair trade agreements. 'We want to build bridges together to defend a trade order that's fair,' he said before meeting Xi.

Sanchez is set to meet representatives of SAIC Motor and sign a Memorandum of Understanding with greentech Envision, which is establishing an EV battery plant in Spain. With an increasingly geopolitical and economic landscape, Sanchez noted the importance of negotiation in resolving differences. The European Commission's proposal to introduce additional duties on Chinese EVs, supported by Spain, will undergo a final vote in October, requiring the backing of a majority of EU member states.

(With inputs from agencies.)