Photo: Courtesy of Sergi Basco

Editor's Note:

Spanish Prime Minister Pedro Sanchez wrapped up his visit to China on Wednesday. Speaking of his four visits to China in four years when meeting with Chinese President Xi Jinping on Tuesday, Sanchez said they demonstrate the high importance both sides attach to Spain-China relations. Spanish economist Sergi Basco (Basco), associate professor of economics at the University of Barcelona, shared with Global Times (GT) reporter Su Yaxuan his perspectives on the significance of Sanchez's visit, the growing importance of China-Spain economic relations, and the prospects for bilateral cooperation.

GT: How do you interpret the frequency of Prime Minister Sanchez's China trip - four times in four years? Since late last year, there has already been a wave of visits to China by European leaders. How do you view this broader trend?

Basco: This visit follows a broader pattern among European leaders. We have seen French President Emmanuel Macron, British Prime Minister Keir Starmer and German Chancellor Friedrich Merz, among others, engaging with China. In that sense, it reflects a general political approach toward China: In these turbulent times, European countries want to maintain a good relationship, promote economic ties and possibly soften some of the disagreements that existed in the past.

I think it is also part of a broader effort to rebuild trust between China and the EU. It is not just about Spain; it reflects a wider European intention to re-establish that trust.

This engagement is still particularly important for Spain. China is currently one of Spain's key trading partners, so maintaining and expanding this relationship carries clear economic significance. 

GT: You previously noted that China, as a market with strong domestic demand, holds significant appeal for European businesses. China is Spain's largest trading partner outside the EU. Against this backdrop, is China playing a bigger role in Spain's foreign economic strategy?

Basco: Nowadays, there is a kind of "green revolution" in Europe, and in Spain in particular. This means that we want electric cars and solar panels, and China is one of the main suppliers of these products. So again, this is one of the reasons why China is going to play a major role.

When people buy cars from China, it is not because they prefer Chinese products for political reasons, but because they believe the products offer good quality at a good price. I am a strong believer that trade is beneficial for everyone, and that's why I do not support trade wars.

GT: In your view, to what extent can China provide stability for the economies of Spain and the EU? 

Basco: Well, Spain and the EU certainly hope China can be a source of stability. Compared to the US, which has become quite unpredictable - especially regarding tariffs - China is, in this sense, more stable. The rules of the game are relatively clear, which is very important for investors.

Overall, trade relations between China and Europe have worked relatively well over the past 20 years. However, there have also been tensions in the last couple of years. This is also one reason why many EU ministers have visited China recently. There is a general consensus that trade relations must be maintained and kept stable, and that there is still potential for mutual benefit. In this respect, China is considered a more important and valuable partner than the US in certain dimensions.

From another perspective, China is not only a major supplier but also a potentially very large market for European products. China's economy is either the largest or second largest in the world, depending on how it is measured, which means it represents a major potential export market for Europe and Spain in the future. Meanwhile, China should pay heed to some concerns in Europe of overdependence on China.

GT: During the meeting with Prime Minister Sanchez, President Xi said that the two sides should seize opportunities, jointly pursue innovation-driven development, strengthen cooperation in areas such as trade, new energy, and smart economy, and encourage exchanges in culture, education, scientific research, and sports. Which area do you see the most potential for further deepening cooperation between China and Spain?

Basco: An important area is green technology. Both China and Europe have strong interests here. China is already heavily involved in solar panels, and a large share of solar installations in Spain and Europe are manufactured in China. Therefore, I think further Chinese investment in these green industries in Spain could be another area with significant potential gains.

China has strong technological capabilities in green and related industries, while Spain and the whole Europe have a growing demand for green technologies. After the energy and oil crises, this demand is expected to increase further.