Spanish Prime Minister Visits China Amid Trade Dispute

Spain's Prime Minister Pedro Sánchez meets with Chinese communist regime leader Xi Jinping (not pictured) at the Diaoyutai State Guesthouse in Beijing on Sept. 9, 2024. Adres Martinez Casares/Pool/AFP via Getty Images

Spanish Prime Minister Pedro Sánchez called for a “fair trade order” on Sept. 9 during a visit to China aimed at boosting ties with the economic giant, despite a standoff between the Chinese communist regime and the European Union.

Sánchez arrived in China on Sept. 8 and spoke with Chinese Prime Minister Li Qiang and the head of the ceremonial legislature, Zhao Leji, ahead of a meeting with Chinese Communist Party (CCP) leader Xi Jinping on Monday.

He will also attend a business forum for Spanish and Chinese companies on Monday. On Tuesday, Sánchez will attend other business events and the inauguration of a Cervantes Institute, a center that promotes Spanish language and culture, before leaving on Wednesday.

This is Sánchez’s second official trip to China within 18 months. He visited China in March 2023 when Spain held the rotating EU presidency.

Meanwhile, the EU is finalizing rules for additional tariffs against Chinese electric vehicles (EVs) that could reach as high as 36.3 percent for state-owned carmakers. Other manufacturers have received lower rates, such as Tesla at 9 percent and Geely at 19.3 percent. These will be imposed on top of the standard 10 percent duty that the bloc applies to all imported cars.

The CCP has not taken kindly to the new restrictions, which the EU says it is imposing to maintain a level playing field, after investigations found that Beijing has been subsidizing the industry to the point of overproduction, resulting in artificially low prices that may unbalance the European market.

The day after the EU released the draft rates in late August, China’s commerce ministry opened an investigation into EU dairy products. Mirroring the EU’s probe, the ministry stated it was investigating whether the EU had subsidized its dairy industry, requiring tariffs to protect domestic interests.

Beijing made a similar move in June, when the EU first announced it was increasing tariffs on Chinese EVs, opening an investigation into European pork products.

The increased tariffs will be voted on in October, and CCP officials have been meeting with automakers and industry associations ahead of the vote.

Spain has backed the tariffs, though it has also welcomed Chinese EV maker Chery’s opening of its first plant in Barcelona. The plant is a joint venture between Spanish maker Ebro-EV Motors and the Chinese company, and it was announced before the tariff hikes.

The United States and Canada have also announced tariffs on Chinese EVs.

Washington is set to increase tariffs on Chinese-made EVs from 25 percent to 100 percent. The move is a precautionary one, as the United States currently imports few Chinese EVs.

Canadian Prime Minister Justin Trudeau announced on Aug. 26 that 100 percent tariffs on Chinese EVs and 25 percent tariffs on Chinese steel and aluminum products would go into effect in October. Global Automakers of Canada President and CEO David Adams previously told The Epoch Times that the new EV tariff is a “preemptive measure” to ensure equal opportunity across Canada’s EV marketplace.

U.S. Trade Representative Katherine Tai applauded Canada’s announcement, calling it an important step in ensuring fair competition.

Dorothy Li and The Associated Press contributed to this report.