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Meredith Chen

Spanish Prime Minister Pedro Sanchez begins a four-day visit to China today, ahead of a key vote by European Union members on whether to impose tariffs on Chinese electric vehicles.
In the coming weeks, EU members must decide whether to approve a European Commission plan to place duties of up to 36.3 per cent on Chinese-made EVs for the next five years, to counter what Brussels says are unfair subsidies.
If approved, the measure must be written into law by October 30 to take effect the following day.
Spain previously backed the move in an advisory vote, along with Italy and France, while Germany, Finland and Sweden abstained.
China has responded by launching its own probes into European food and drink imports, including pork products.
Spain is the leading source of pork imports into China, representing more than 20 per cent of the total.
Sanchez will meet President Xi Jinping, and other senior Chinese officials his visit, which ends on Wednesday.
“China is willing to take Prime Minister Sanchez’s visit as an opportunity to advance bilateral relations, deepen mutual trust through high-level exchanges, and address global challenges through high-quality cooperation,” foreign ministry spokeswoman Mao Ning said in announcing the coming trip last week.
Chinese observers view the visit as an effort to ease tensions but warned that resolving the fundamental disagreements between China and the EU would be a lengthy process.
“From a diplomatic perspective, Sanchez’s visit to China at this time conveys a message of reconciliation and a search for better compromise methods with China,” said Ding Yifan, former deputy director of the Institute of World Development, a Chinese government research body.
China is Spain’s largest trading partner outside the EU, according to the Chinese Ministry of Commerce, with total trade between the two countries standing at US$48.6 billion last year.
According to Jian Junbo, an associate professor at Fudan University specialising in China-Europe relations, Sanchez’s visit could help to ease EU-China tensions but, from a long-term perspective, their disputes were “fundamentally structural”, whose resolution would require a prolonged process.
The challenges stemmed from the increased trade competition between the two sides, Jian said.


“This trend may become even more intense and pronounced in the future, leading both sides to implement more protectionist measures against each other’s trade, which make it difficult to resolve the issues through one or two intergovernmental leader visits, instead, requiring a long-term process.”
Sanchez’s trip follows recent visits by Italian Prime Minister Georgi Meloni and a delegation from Ireland, a major dairy exporter to China.
“The frequent visits by EU member states clearly show they do not want a large-scale trade war, which, along with potential Chinese retaliation, would harm the interests of all,” said Ding Chun, director of the Centre for European Studies at Fudan University in Shanghai.
“I don’t believe we’ve reached an irreparable stage yet. There is still time and space for bilateral consultations, and both sides can seize the remaining opportunities. Hopefully, both can find a solution that at least avoids a lose-lose outcome.”
Ding Yifan said Sanchez’s visit would “have some impact, but not a fundamental one” because the EU as a whole decided trade policy.
But he said there was still room for manoeuvre because not all EU countries were fully supportive of the current “unfriendly” approach towards China.
Europe is currently facing “manufacturing hollowing out” and “the real goal isn’t about the tariffs, but to pressure Chinese EV companies into investing in Europe,” according to Ding.
There may still be some space for a compromise. Last month, the European Commission said it would not impose retroactive EV tariffs.
Days later, China said an investigation had found that brandy was being dumped on the Chinese market at a rate significantly lower than its retail price in Europe, but it would not impose anti-dumping duties just now.


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Spanish Prime Minister Pedro Sanchez will meet President Xi Jinping and other senior Chinese officials. Photo: dpa

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News

China

Diplomacy

Madrid previously backed the duties in an advisory vote, but if approved Beijing could widen a probe that could hit Spanish pork exports


Madrid previously backed the duties in an advisory vote, but if approved Beijing could widen a probe that could hit Spanish pork exports.


European Union

Spain

Electric & new energy vehicles