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14 November 2025

Spain And China Forge New Ties Amid EU Tensions

King Felipe VI’s landmark Beijing visit sees new agreements signed as Spain seeks economic balance between China and the European Union.

Spain’s King Felipe VI walked into the Great Hall of the People in Beijing on November 12, 2025, marking a moment that hadn’t happened in nearly two decades: a Spanish monarch on a state visit to China. The red carpet was rolled out, with Chinese President Xi Jinping greeting Felipe in a ceremony heavy with symbolism. But this wasn’t just about pageantry—it was about charting a new course for Europe and China at a time when their relationship is, frankly, on the rocks.

According to Reuters, this visit was the first of its kind in 18 years for Spain, and it came at a particularly delicate moment. The European Union’s ties with China have been fraying, battered by disputes over trade, technology, and geopolitics. Yet, Madrid is seeking to carve out a pragmatic path, one that balances European skepticism with the lure of Chinese investment and market access. As Xi Jinping put it during their meeting, “The world needs more constructive forces dedicated to peace and development. China stands ready to work hand-in-hand with Spain to build a comprehensive strategic partnership.”

Xi’s words weren’t just diplomatic niceties. He offered a vision of cooperation with “great global influence,” signaling Beijing’s desire for Spain’s support within the EU. In exchange, China is dangling the promise of greater economic security for its European partner. The two leaders didn’t waste time: they oversaw the signing of 10 agreements covering everything from food safety and phytosanitary standards to language education, space, and astronomy. It’s a broad sweep, and it shows just how high the stakes are.

On the same day, Chinese Premier Li Qiang met with Felipe and voiced support for more Chinese investment in Spain, especially in the photovoltaic, green hydrogen, and power batteries sectors. According to China’s official Xinhua news agency, Li emphasized that expanding cooperation in these cutting-edge industries could be a win-win for both countries.

Madrid’s interest in deepening ties with Beijing isn’t a sudden pivot. Back in April, Spain unveiled a new foreign affairs program calling for greater collaboration with Asian partners, including Japan and South Korea, on supply-chain security. But China looms largest. As Europe’s largest exporter of pork products, Spain has a lot riding on its relationship with the world’s second-largest economy. Each year, Spain sells about $1.2 billion worth of meat and byproducts to China—roughly a fifth of China’s pork imports, according to Spain’s state trade agency ICEX.

But the trade relationship is uneven. In 2024, Spain imported goods from China worth 45 billion euros (about $52.5 billion), while its exports to China amounted to just 7.5 billion euros. That’s a yawning gap, and it’s one reason why Spain has been lobbying hard for a more balanced relationship. The issue came to a head in September 2025, when China slapped 62.4% tariffs on EU pork products. This move was a direct response to the European Commission’s decision to impose tariffs on Chinese electric vehicles—a move that exposed divisions within the EU, as Spain notably abstained from the vote in October 2024.

Since then, Spanish Prime Minister Pedro Sanchez has been working overtime to get those tariffs removed, pitching Spain as a prime investment destination for Chinese firms. The diplomatic push hasn’t gone unnoticed in Beijing, which, just last week, proposed resuming investment talks with the EU after a four-year freeze. It’s a sign that both sides are looking for ways to lower the temperature and get business—and dialogue—back on track.

Yet, the broader EU remains wary. There’s mistrust of Beijing’s support for Russia, concerns about state-backed industrial power, and a sense that trade flows are anything but fair. According to Reuters, the U.S. even likened Spain’s outreach to China as “cutting your own throat,” after Spain’s economy minister suggested Europe should align more closely with Beijing. It’s a tough crowd, and one that Madrid has to navigate carefully.

King Felipe VI, as a constitutional monarch, offers Madrid a unique diplomatic tool. He can engage in what some call “subtle diplomacy”—building bridges and trust without the baggage of day-to-day politics. As Felipe told Xi, “The friendship between Spain and China undoubtedly benefits both peoples and is consistent with two countries with a long history and a global vocation. A relationship of trust has been forged.” That kind of language, while measured, can grease the wheels when official channels are clogged by politics.

But the challenges go beyond tariffs and trade. As Joerg Wuttke, partner at DGA Albright Stonebridge Group and former president of the EU Chamber of Commerce in China, pointed out in an interview in Beijing on November 13, 2025, the relationship is fraught with deeper issues. Wuttke emphasized the need for clear communication between China and Europe to tackle thorny problems, especially as tensions have been rising over critical mineral supplies, investment, and security. He didn’t mince words, calling for a “new Manhattan Project” to break China’s dominance in the rare earths supply chain—a nod to the strategic importance of these materials for Europe’s high-tech industries.

Wuttke’s critique didn’t spare Brussels. He noted that the EU has faced internal criticism for lacking a coherent strategy on China, despite repeated pledges to “de-risk” from the Chinese economy. Long-standing rifts—like manufacturing overcapacity and the ongoing war in Ukraine—have only deepened the sense of unease. According to Wuttke, “Relations with Beijing have continued on a downward spiral.”

All of this makes Spain’s diplomatic balancing act even trickier. On one hand, Madrid is eager to attract Chinese capital and keep its export machine humming. On the other, it can’t afford to alienate its EU partners or ignore Washington’s warnings. The Spanish approach, at least for now, seems to be about engagement without naiveté—signing deals where interests align, but keeping one eye on the bigger geopolitical chessboard.

For Beijing, Spain’s willingness to engage is a welcome counterpoint to the more hawkish voices in Brussels and Washington. Xi Jinping’s vision of “jointly exploring third markets such as Latin America” taps into Spain’s historic ties and could open new opportunities for both countries. But it also raises questions about whether such partnerships can really flourish in the current climate of suspicion and strategic rivalry.

Looking ahead, the resumption of EU-China investment talks could be a turning point—if both sides are willing to compromise. But as the flurry of agreements signed in Beijing shows, there’s still plenty of room for practical cooperation, even as the political winds shift. For now, Spain is betting that a mix of subtle diplomacy and economic pragmatism will keep it in Beijing’s good graces—without burning bridges in Brussels.

In the world of international relations, sometimes it’s the quiet moves—the handshakes, the carefully worded statements, the signed agreements—that matter most. Spain’s state visit to China may not have solved every problem, but it’s a reminder that, even in turbulent times, dialogue and diplomacy still have their place.