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(Bloomberg) — Spanish Prime Minister Pedro Sanchez will travel to China next month to meet with President Xi Jinping, according to people familiar with the preparations.
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The trip comes as the European Union is rethinking its global trading relationships amid turmoil caused by President Donald Trump’s trade war. Sanchez will also visit Vietnam, said the people, who spoke on the condition of anonymity.
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On Sanchez’s previous trip to Beijing in 2024, he broke ranks with the rest of the EU and urged the bloc to re-evaluate its plan to impose additional tariffs on Chinese-made electric vehicles. His conciliatory stance has helped lure investments into Spain.
The EU followed through on the tariffs, which are meant to prevent European manufacturers from being overwhelmed by state-subsidized competition from China.
Sanchez’s visit will take place over the 20th anniversary of a partnership agreement between Spain and China, according to the people. In Vietnam, the Spanish government aims to open new market opportunities.
On Thursday, the Chinese ambassador in Madrid lauded Sanchez’s “pragmatic approach,” and said companies from his country are negotiating an additional €3 billion ($3.3 billion) of investments in Spain. That’s on top of roughly €7 billion already announced since September, mostly in the auto sector.
Chinese carmakers are seeking to establish factories in Europe to avoid tariffs. The new Chinese investments will be mainly in the southern regions of Spain, Ambassador Yao Jing said.
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Spain’s combination of lower energy costs and diversified auto industry has also attracted large investments from European carmakers like Volkswagen AG and Stellantis NV.
Volkswagen’s €10 billion hub in Valencia will provide cells for the company’s EV lines in Barcelona. Stellantis and Chinese battery maker Contemporary Amperex Technology Co. will invest as much as €4.1 billion in a battery plant in Aragon.
Leapmotor International, a joint venture between Stellantis and EV maker Zhejiang Leapmotor Technology, plans a €200 million investment in a factory in Zaragoza, the ambassador said.
—With assistance from Macarena Muñoz and Clara Hernanz Lizarraga.
(Adds comment from Chinese ambassador starting in sixth paragraph.)
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