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Spain’s Pedro Sanchez Seeks Closer Ties with China Amid Strained U.S.-EU Relations

by Team Lumida
April 9, 2025
in Macro
Reading Time: 4 mins read
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Spain’s Pedro Sanchez Seeks Closer Ties with China Amid Strained U.S.-EU Relations
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Key Takeaways:

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  • Spanish Prime Minister Pedro Sanchez is visiting China to strengthen economic ties, positioning Spain as a key European partner for Beijing amid growing tensions with the U.S. under President Trump’s trade policies.
  • Sanchez aims to secure agreements in pharmaceuticals, agriculture, and renewable energy, building on recent Chinese investments in Spain, including EV plants and solar farms.
  • The visit aligns with Sanchez’s push for the EU to adopt a more independent stance toward China, balancing partnership, competition, and rivalry.
  • While Sanchez’s approach is out of step with the broader EU, where skepticism toward China has grown, it reflects Spain’s focus on green energy, migration, and strategic autonomy.

What Happened?

Spanish Prime Minister Pedro Sanchez is set to meet Chinese President Xi Jinping in Beijing, marking his third visit to China in two years. The trip comes as U.S.-EU relations face strain due to President Trump’s tariffs and trade policies. Sanchez is leveraging the visit to position Spain as a reliable partner for China in Europe, with agreements expected in key sectors like pharmaceuticals, agriculture, and clean energy.

Sanchez has been vocal about the need for the EU to recalibrate its relationship with China, advocating for a balanced approach that prioritizes economic collaboration while maintaining strategic autonomy from the U.S. His efforts have already attracted significant Chinese investments in Spain, including an EV plant near Barcelona and a €4.1 billion battery factory.


Why It Matters?

Sanchez’s visit underscores the shifting dynamics in global trade and diplomacy as Europe seeks to navigate its relationships with both the U.S. and China. While many EU nations have hardened their stance toward Beijing, Sanchez’s focus on green energy and economic growth has led to a more collaborative approach.

For China, Spain represents a stable partner within the EU, offering opportunities to expand its influence in Europe, Africa, and Latin America. For Spain, closer ties with China could bolster its green transition and economic growth, particularly in renewable energy and electric vehicles.

However, Sanchez’s approach risks clashing with broader EU skepticism toward China, fueled by Beijing’s ties to Russia and concerns over strategic dependencies.


What’s Next?

Sanchez’s visit is expected to yield new Chinese investments in Spain, particularly in clean energy and electric vehicles. The trip also highlights Spain’s ambition to play a larger role in shaping EU-China relations, advocating for a more independent stance from U.S. influence.

As the EU debates its future relationship with China, Sanchez’s strategy could serve as a model for balancing economic collaboration with strategic caution. However, the extent to which Spain can influence broader EU policy remains uncertain, especially as other member states adopt a more cautious approach toward Beijing.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018