The SAIC Motor vessel during the official and institutional reception ceremony for the first car carrier belonging to the Chinese automotive giant SAIC Motor, on 9 July 2026, in Ferrol, A Coruna, Galicia, Spain. Photo: VCG

The Spanish government's backing for a planned electric vehicle (EV) factory by China's SAIC Motor, despite some concerns, shows that rational commercial logic overrides unwarranted security fears. This move would help Madrid advance its electrification agenda and create new economic and industrial opportunities.

Sources at Moncloa Palace clarified that the Spanish Defense Ministry's objections, citing hypothetical risks to national security, represent merely one of the various reports submitted by agencies during the processing of large-scale projects. They emphasized that such opinions are, in any case, non-binding, according to Spanish news outlet El Pais.

Spanish Minister for Digital Transformation and Public Administration Oscar Lopez served as the government's official voice, stating: "All industrial investments of this magnitude always involve reports analyzing economic viability, job creation, industrial impact, and, of course, national security. Perfectly normally, all these elements are being assessed, as in any other operation of this size, to guarantee an investment so important for the region, employment, and industry." 

Lopez underscored the executive's confidence that the Chinese investment "will be compatible with ensuring industrial development, job creation, and national security," according to the report. 

The project, valued at 200 million euros ($230.78 million), is expected to create about 1,000 jobs, and it is seen as a crucial opportunity for a region long affected by industrial decline. However, the proposed factory would be located in Ferrol's outer port, and its proximity to key naval installations has triggered warnings from Spain's Ministry of Defense and Center for National Intelligence about possible espionage threats linked to China, according to another Spanish media outlet russpain.

"The contest over SAIC's Ferrol plant is, at its core, a clash between pursuits of economic development and a tendency to frame trade as a national security issue. The Spanish government's stance demonstrates that rational commercial logic will ultimately prevail over unwarranted fears," Jian Junbo, director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times on Tuesday.

This not only underscores the resilience of China-Spain economic and trade ties but also sends a clear signal to the world: in the race to lead the new energy revolution, win-win cooperation remains the greatest common denominator serving the fundamental interests of all nations, Jian said.

The project will not only inject much-needed vitality into Ferrol - nicknamed "the Spanish Detroit" - by creating economic and industrial opportunities, but also leverage MG's technological and supply chain strengths to help Spain realize its strategic ambition of becoming Europe's leading EV producer, Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Tuesday.

In recent years, Chinese vehicle producers have continued to grow in Spain in terms of sales, local production and mobility technologies. For instance, Chinese automaker Geely Auto and US automaker Ford announced a new cooperation agreement in Spain in July.

Spanish Prime Minister Pedro Sanchez attended the event. He said that Geely brings technological platforms, electrification capabilities, rapid product development and global reach, while Ford contributes its knowledge of the European market, industrial capacity and brand strength. 

"Strategic alliances are a necessary condition to compete and to lead," he said, the Xinhua News Agency reported.

Along with the increased market share of Chinese automakers in Spain, local consumer perceptions have also changed. A survey released last year by Spanish automotive platform Coches.net and vehicle distributors' association Ganvam found that seven out of 10 Spaniards viewed Chinese-brand vehicles favorably and would consider purchasing one.