Spain has revised its stance on strengthening the EU's defenses against China — Politico
Madrid has withdrawn its support for a European initiative calling for tougher trade policies against China. The initiative in question is a French proposal that would have significantly strengthened mechanisms to protect the EU’s internal market from Beijing’s economic expansion.
This was reported by Politico.
Spanish Minister of Economy and Trade Carlos Cuervo stated that at this stage, Madrid has not provided any political support for the relevant non-paper.
This statement marked a sudden reversal in the country’s policy, as just last Friday Spain was among the major European economies (along with Italy, the Netherlands, and Lithuania) that signed France’s position paper. That appeal to the European Commission called for more active investigations against Beijing and the creation of a new instrument to combat market distortions. However, according to Politico, within a few days Madrid began backtracking, stating that the document had been discussed solely at a technical level, not a political one.
This move by the trade minister reflects Spain’s traditional status as one of the bloc’s most China-friendly members. Prime Minister Pedro Sánchez has visited Beijing four times over the past four years, and the country itself remains critically dependent on Chinese investment, particularly in the strategic sectors of solar panel manufacturing and the automotive industry.
Carlos Cuervo’s statement came just before a scheduled debate among European commissioners on rethinking relations with China amid a flood of ultra-competitive Chinese imports that are stifling European industry. Instead, on the sidelines of a meeting of the economy ministers of the six largest EU countries (France, Germany, Italy, the Netherlands, Spain, and Poland), the Spanish minister called not for restrictions but for deeper cooperation:
“The EU must step up its game, and that means we need to talk to China and the US on equal terms. We need to engage with the Chinese authorities.”
Madrid’s rapid change of course has once again exposed internal divisions and the difficulties of forming a unified defense strategy within the EU:
- France, Belgium, the Netherlands, and Lithuania insist on confrontational measures and the protection of the bloc’s internal market;
- Spain, Germany, the Czech Republic, and Slovakia have warm bilateral ties with Beijing and openly fear a trade war.
Spain’s Minister of Economy concluded that the trade imbalance with China can only be resolved through negotiations. Furthermore, he stated that engaging Chinese companies and their capital is part of the economic security agenda, as it creates real added value for the European continent.
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