Spanish Prime Minister Pedro Sánchez arrived in Beijing on April 11 for a five-day visit—his fourth trip to China in as many years—underscoring Madrid's determination to deepen ties with the world's second-largest economy.
"This visit is important because what it shows is a very strong commitment on the side of the Spanish government to having a high-level regular relationship with Chinese authorities," says Mario Esteban Rodríguez, director of the Centre for East Asian Studies at the Autonomous University of Madrid.
Economic goals at the forefront
Sánchez's agenda is largely focused on economic priorities. He aims to attract more productive Chinese investment, particularly in high-tech sectors and those related to the green transition. During the visit, he attended a business event organized by the EU Chamber of Commerce in China, where he met with entrepreneurs from strategic sectors including automotive, energy and telecommunications.
"Chinese investment in Spain has increased significantly since 2024," Esteban notes. According to the Spanish Ministry of Economy and the Spanish Institute for Foreign Trade (ICEX), Chinese investment in Spain surged from €149 million in 2024 to €643 million in 2025—an increase of 331 percent. Between 2010 and 2025, Chinese firms invested a total of €9.7 billion in Spain, primarily in the extractive industry and the energy sector.
On the ground, several landmark projects are already taking shape. Chinese battery giant CATL is building a €4.1 billion battery factory in Zaragoza in partnership with Stellantis, with production expected to begin by the end of 2026.
Chinese automaker Chery has opened a European operations center in Barcelona and also launched a joint venture to revive a former Nissan plant there. These investments, Esteban says, are driving a quiet reindustrialisation in areas that had lost industrial capacity.
Spain is also seeking greater market access for its products. Since 2018, Beijing has signed 10 agri-food export protocols with Madrid, including recent deals on pork and cherries. The mechanism helped prevent a full suspension of Spanish pork exports during last year's African swine fever outbreak.
Yet Spain wants more, especially in service sectors such as insurance, communications, and banking, where Spanish firms are highly competitive. "This would be good for having a more balanced economic relationship," Esteban argues.
A window of opportunity
Traditionally, larger EU economies like Germany and France have maintained much deeper political and economic ties with China. "For many years, Spain missed many opportunities related to China," Esteban admits. But now that other member states are becoming "more reluctant", he sees a window for Madrid to step up. "It's a good time for Spain to take advantage of this window of opportunity to look for this kind of beneficial engagement," Esteban noted.
Behind this push is a broader strategic calculus. "It's not just about reducing our dependence on the US," Esteban says, "but more about improving or increasing strategic autonomy—increasing the capabilities of Spain and the European Union to develop what is needed in the current world, in terms of technology and military capabilities."
Spain's foreign ministry recently published an Asia-Pacific strategy identifying China as its largest supplier of goods—surpassing Germany and France—and prioritising market access for Spanish products, especially agricultural goods and auto components. Madrid has also thrown its weight behind the EU-Mercosur trade deal and advocates a less US-centric, more diversified foreign policy.
On global flashpoints, Spain and China have found common ground. Beijing has criticised US-Israeli military actions against Iran, stating that "trade should not be used as a tool or weapon"—a position welcomed by the Spanish government, which has been among the first European voices to oppose the war in the Middle East.
A test case for Europe
China has become a key provider of advanced technologies across a wide range of fields. Yet Esteban believes many Spanish companies remain unaware of the full potential Chinese suppliers can offer. "I think there are still many Spanish companies that are not aware of all the potential that Chinese suppliers can offer on that front."
The outcome of Sánchez's strategy, he adds, will be closely watched by other EU members. "So let's see what happens with China: whether this strategy of more constructive engagement will actually bring more tangible, beneficial outcomes. That would send the right signal to other EU member states."
Reporter: Guo Zedong
Poster: Lai Meiya
