China, EU should build bridges, avoid trade war: Spanish PM

Spanish Prime Minister Pedro Sanchez stated on Wednesday that a trade war between the European Union and China is unnecessary, urging both sides to seek a compromise on planned tariffs.

Sanchez made these remarks during an event at Mondragon Industrial Park in Kunshan, a city near Shanghai. He was addressing the European Commission’s ongoing anti-subsidy investigation into Chinese-made electric vehicles (EVs) and the potential imposition of significant tariffs. While the EU has revised some duties and reduced proposed tariffs, members are expected to vote on the matter in October.

China has renewed its efforts to negotiate and overturn the proposed tariffs on its EVs this week. When asked if Spain would reconsider its stance on EU tariffs for Chinese-made EVs, Sanchez responded, "We have to reconsider our position, all of us—not just the member states but also the commission."

"We don’t need another war, especially not a trade war. I believe we should be building bridges between the European Union and China. From Spain, we will take a constructive approach and seek a compromise between China and the European Commission," he added.

Before the press conference, Sanchez met with local business leaders and entrepreneurs and also held discussions with local government officials.

During his state visit to China, Sanchez had earlier met with Chinese President Xi Jinping on Monday, where he reiterated his hope that the European Union could avoid a trade conflict with China.

"The Spanish government is committed to strengthening trade and investment relations with China, particularly in green and innovative industries, while ensuring that trade and geopolitical tensions do not hinder these efforts," Sanchez said on Wednesday. "However, it is undeniable that these relations must be balanced."