In a rare but pivotal statement, Spanish Prime Minister Pedro Sánchez recently called for Europe to reconsider its tariffs on China. This remark, delivered on September 11 during a press conference after his visit to China, marks a significant shift in Spain’s stance on the ongoing trade tensions between the European Union and China. Sánchez’s change in perspective, however, is less surprising when examined in light of his recent experiences in China, where he gained firsthand insight into the country’s technological advancements and economic development philosophy. His comments not only reflect a growing sentiment within Europe but also signal a potential turning point in the relationship between the EU and China.
Sánchez’s statement, made during a visit to the Kunshan Spain Mondragon Industrial Park in Jiangsu Province, has garnered widespread attention both in Brussels and across European capitals. What surprised many officials was not merely the content of his message but the timing and location of its delivery. However, for those following Spain’s evolving relationship with China, the shift was a natural progression.
After his visit to China, where he was deeply impressed by the technological advancements and development strategies of Chinese companies, Sánchez’s remarks were grounded in a more nuanced understanding of China’s development philosophy. One area that particularly stood out to the Spanish leader was China’s electric vehicle (EV) industry. Following a brief test drive in one of the vehicles, Sánchez remarked that the technology was “clearly advanced,” adding that European car manufacturers could learn valuable lessons from their Chinese counterparts. His assessment was a far cry from the defensive posturing of some EU member states toward China’s growing dominance in the electric vehicle sector.
Sánchez’s comments did not just reflect Spain’s position but also resonated with other key European powers. Germany, a country with substantial cooperation with China in the automotive industry, quickly echoed Sánchez’s sentiment. A German official, in response to the Spanish prime minister’s remarks, stated, “The direction of travel is one that we share,” indicating broad support for a cooperative approach rather than a confrontational stance in dealing with China’s industrial rise.
Germany’s alignment with Sánchez underscores a growing realization among certain EU member states that Europe’s future competitiveness cannot be safeguarded through protectionism. Instead, mutual cooperation with countries like China, especially in industries such as electric vehicles and renewable energy, is seen as essential to Europe’s long-term economic vitality.
Sánchez’s visit to China and his subsequent call for a reconsideration of tariffs must be viewed in the broader context of Europe’s economic challenges. Just two days before Sánchez’s statement, former European Central Bank president Mario Draghi presented a report in Brussels titled The Future of European Competitiveness. While the report touched on various concerns regarding China’s growing economic clout, it was more a reflection of Europe’s deep anxiety about falling behind the US and China in technological advancements. Draghi’s recommendations included sweeping reforms to revive Europe’s competitiveness, but one implicit message was clear: Europe’s approach to competition, particularly with China, needs to be reassessed.
The Draghi report, while not directly addressing protectionism, implicitly criticized the idea that Europe could close the technological gap with China and the US by imposing tariffs and trade barriers. Instead, Draghi’s vision for a more competitive Europe centered on openness, innovation, and reform. This aligns closely with Sánchez’s argument that Europe “doesn’t need another trade war,” and instead should look for ways to cooperate with China for mutual benefit.
One of the key areas where Europe and China can benefit from increased cooperation is the energy transition. Both regions are undergoing significant transformations as they shift away from fossil fuels and toward renewable energy sources. The electric vehicle industry is at the heart of this transformation, and China’s leadership in this field has made it a critical partner for Europe’s automotive sector.
During his visit to China, Sánchez highlighted the potential for collaboration in the electric vehicle sector. His experiences on the ground, including his test drive of a Chinese EV, gave him a firsthand understanding of how far China has come in this field. Europe, with its ambitious goals for decarbonization and green energy, can benefit greatly from China’s expertise and production capabilities in electric vehicles. Sánchez’s message was clear: Rather than isolating China, Europe should embrace the opportunities for cooperation in industries that are key to the future of both regions.
Sánchez’s call for a reconsideration of EU tariffs on China is not an isolated viewpoint within the European Union. In recent months, several high-profile European leaders have made similar trips to China, each emphasizing the importance of maintaining open trade relations with the Asian giant. Norwegian Prime Minister Jonas Gahr Støre, for instance, recently concluded a visit to China, during which he reiterated Norway’s position of not imposing higher tariffs on Chinese electric vehicles. Likewise, Italian Prime Minister Giorgia Meloni and officials from Ireland have also visited China in recent months, signaling a broader European interest in maintaining constructive economic relations with China.
Moreover, the European Commission has already revised some duties or lowered proposed tariffs on Chinese goods, indicating that there is significant internal resistance to a full-fledged trade war within Europe. This mirrors the situation in the United States, where the decision to impose Section 301 tariffs on China has faced strong opposition from various industries. Protectionist measures, while politically expedient in some cases, are proving difficult to sustain in the face of internal and external resistance.
Sánchez’s remarks highlight a fundamental truth: Development opportunities are best realized through extensive interaction, not isolation. As China and Europe both navigate their respective energy transitions and seek to enhance their global competitiveness, cooperation, rather than confrontation, is the most rational and beneficial approach. China, for its part, has consistently expressed its willingness to engage in dialogue with the EU to resolve trade disputes. Just a day before Sánchez’s statement, China’s Ministry of Commerce reaffirmed its desire to consult further with the EU on trade issues, signaling China’s commitment to finding mutually beneficial solutions.
In conclusion, Prime Minister Pedro Sánchez’s call for Europe to reconsider its tariffs on China should be seen as part of a broader movement within Europe to strengthen cooperation with China. His remarks reflect a growing recognition that Europe’s economic future lies in collaboration, not protectionism. As the global industrial landscape undergoes significant changes, both China and Europe stand to benefit from working together to address the challenges and opportunities of the 21st century.
