The deepening economic relationship between Spain and China is creating friction within the European Union, as key member states like Germany and France advocate for a more unified and aggressive stance against Beijing. These continental powers are urging Brussels to develop the capacity to block subsidized Chinese competitors from the EU market, citing significant trade imbalances that the European Commission estimates at approximately €1 billion per day.
Adding to the concerns are fears about China's close relationship with Russia, particularly its role in supporting Moscow's war effort in Ukraine. While Beijing denies direct military aid, defense analysts point to technological and economic assistance that they believe enables Russia to sustain its military operations. Against this backdrop, Spain's enthusiastic courtship of Beijing has led to accusations of prioritizing its own economic interests above broader European solidarity.
Victor Cortizo, a lawyer specializing in Sino-Spanish relations, describes the situation as Spain legitimately pursuing its national gain. "Realpolitik is a thing. If I get closer to China because that attracts Chinese investment and bolsters my economy, then that is strategically more appealing than supporting allies who are also only looking out for themselves," Cortizo explained.
The tangible results of this strategic shift are evident along the world's longest freight rail link, connecting Yiwu in China to Madrid. This 13,000-kilometer route, largely transporting car parts and electronics to Spain and Spanish goods like ham and wine back to China, symbolizes the growing bilateral ties. Cortizo noted that Chinese investment in Spain has doubled in the past year alone, according to ICEX Spain Trade and Investment, with significant capital flowing into new battery gigafactories and car plants.
Spain may be positioning itself as Beijing's preferred European investment destination, especially with Hungary's shift away from its previous pro-China stance under Viktor Orbán. "US investment is sinking and Chinese investment [is] rising in relevance here," Cortizo stated. While the United States remains Spain's largest single foreign investor, net investment has declined, according to Spain's Ministry of Economy.
Public opinion in Spain also reflects a more favorable view of China compared to the U.S. A Pew Research Center poll indicated that 54% of Spaniards held a positive view of China, versus 30% for the U.S. This shift is partly attributed to perceptions of trade ease with China, contrasted with difficulties experienced with U.S. trade policies under the Trump administration, as well as political disagreements over defense spending and the use of Spanish bases.
Chinese companies are filling gaps in Spain's industrial landscape, such as Chery Automobile choosing Spain for its first European manufacturing hub, revitalizing the dormant Spanish brand Ebro. However, critics express concern that Chinese factories in Spain could undermine the EU's single market, with projects like battery and energy storage facilities potentially serving to circumvent import tariffs on Chinese electric vehicles.
Miguel Otero, a China specialist at Madrid's Elcano Royal Institute, counters that Spain's European allies are being hypocritical, as they too maintain strategic relationships with China. He argues that Spain is simply catching up and diversifying its international partnerships in an era where Europe can no longer fully rely on the U.S.
Security concerns also arise, particularly following Spain's Ministry of the Interior awarding a €12.3 million contract to Chinese tech giant Huawei for sensitive data management. European Parliament members have warned that such contracts could compromise EU intelligence sharing.
Meanwhile, other European nations are also navigating complex international relationships. Finland, facing security concerns due to its border with Russia and a perceived wavering U.S. commitment to NATO's mutual defense clause, has turned to Israel for advanced defense equipment. Greece, feeling threatened by Turkey, has also deepened its defense ties with Israel, hoping to bolster its security while maintaining relations with the U.S.
These bilateral and smaller multilateral engagements, while serving specific national interests, complicate broader EU efforts to present a united front on defense and security matters. This fragmentation is seen by some as counterproductive, potentially emboldening adversaries like Russia and China, especially at a time when the continent faces unprecedented pressure.