Xi Jinping Seeks Stronger Ties with Spain as Madrid Courts Chinese Investment

Chinese President Xi Jinping on Wednesday proposed a “comprehensive strategic partnership with global influence” during his meeting with Spain’s King Felipe VI, who is on a state visit to China—the first by a Spanish monarch in 18 years.

The visit comes as Madrid seeks to attract Chinese investment while balancing its commitments within the European Union. Beijing, meanwhile, is eager to ease trade frictions with the EU over its heavily subsidized electric vehicle sector and to strengthen its economic partnerships amid rising tensions with Washington.

During their meeting at the Great Hall of the People in Beijing, Xi told the Spanish monarch,

“The world needs more constructive forces dedicated to peace and development. China is ready to work with Spain to build a comprehensive strategic partnership that is more stable, dynamic, and globally influential.”

According to state media, Xi also suggested joint ventures between Chinese and Spanish companies to explore “third markets,” such as Latin America, where both nations have long-standing ties.

King Felipe highlighted the historical and global depth of the two countries’ relationship, saying,

“The friendship between Spain and China undoubtedly benefits both nations and reflects our shared history and international importance. A relationship of trust has been built.”

Following their meeting, the two leaders signed ten cooperation agreements, covering food safety, phytosanitary standards, language education, space, and astronomy collaboration.

Balancing Diplomacy and Trade

Madrid has recently expanded its diplomatic outreach within the EU, unveiling a new foreign policy framework that calls for closer trade cooperation with China alongside supply-chain partnerships with Japan and South Korea.

However, closer ties with Beijing carry political risks. The broader European Union remains cautious toward China, citing its support for Russia and concerns over trade imbalances and state subsidies.

In April, the United States criticized Spain’s outreach to China, comparing it to “cutting its own throat,” after Spanish officials advocated for deeper European engagement with Beijing.

Spain, Europe’s largest pork exporter, has also been caught in the crossfire of the EU-China trade dispute. Following the EU’s decision to impose tariffs on Chinese electric vehicles, China retaliated by levying 62.4% duties on EU pork imports, a move that directly impacted Spanish producers.

Spain’s Prime Minister Pedro Sánchez has since pushed for removing those tariffs and promoting Spain—Europe’s fourth-largest economy—as an attractive destination for Chinese investment. Spain exports around $1.2 billion worth of pork and byproducts to China annually, accounting for nearly one-fifth of China’s total pork imports.

Last week, Beijing proposed to resume long-stalled investment negotiations with the EU, suspended since 2021 — a development Madrid has quietly welcomed.