On 30–31 March 2023, on the invitation of Chinese language President Xi Jinping, Spanish Prime Minister Pedro Sanchez visited China in his first journey to the nation. Sanchez’s journey passed off simply earlier than Spain takes over for the six-month rotating presidency of the Council of the EU from Sweden in July, throughout which it intends to spice up the EU’s relations with China.
Sanchez is the primary European chief to satisfy Xi after the latter’s latest go to to Moscow the place Xi launched his 12-point peace proposal. Thus, central to Sanchez’s go to to Beijing was the proposal, which regardless of scepticism from Western leaders within the context of cosier Russia-China ties, sparked his curiosity. Whereas praising the proposal’s rejection of nuclear weapons and its respect for territorial integrity, Sanchez promptedXi to know Ukrainian president Zelensky’s peace plan “first hand”, insisting that Ukraine would set the circumstances for peace.
The go to additionally passed off on the event of the fiftieth anniversary of diplomatic relations between Spain and China, which have been established in 1973, and which has been adopted by a Strategic Partnership signed in 2005.
Commerce on the centre
The majority of the Spain-China relationship has centred round economics, with China being an essential supply of investments and commerce alternatives for Spain, which has battled extreme monetary and debt crises in recent times. Unsurprisingly, Sanchez’s go to targeted on commerce, with conferences happening on the Boao Discussion board for Asia, usually described as China’s reply to Davos.
China stays Spain’s largest buying and selling accomplice outdoors of the EU. Chinese language investments in Spain have steadily elevated and have moved past their conventional focus within the sectors of agriculture, actual property, and hospitality into extra strategic sectors as is clear in Chinese language firm COSCO’s stakes in ports in Bilbao and Valencia. In keeping with knowledge from the Rhodium Group, Chinese language funding in Spain elevated from lower than €10 million yearly earlier than 2012 to over €1.6 billion in 2016.
Spain’s persistent commerce deficit with China stood at €41.6 billion in 2022 marking a 37 percnt enhance from 2021. This demonstrates the asymmetry in financial ties between the 2 international locations. In 2022, China changed Germany as Spain’s prime provider because the supply of virtually 11 p.c of its imports. Therefore, constructing on from his meetingwith Xi on the sidelines of the G20 summit in Bali final 12 months, Sanchez reiterated the necessity to develop a extra balanced commerce relationship with China in addition to a discount in non-tariff obstacles that current difficulties for Spanish corporations, principally comprising SMEs, to entry China’s protected and aggressive market. On this context, Spanish elites assist the EU-China Complete Settlement on Funding that also awaits ratification by the European Parliament, believing that it might generate a level-playing subject for financial exercise with China.
From “no pasa nada” to conditional cooperation
Whereas Spain’s relations with China are positioned throughout the wider EU framework, Spain’s strategy to China has been comparatively average.
Each Spanish PM has visited China since King Juan Carlos I’s go to to China in 1978. Spain was the primary Western nation to signal an extradition treaty with China in 2005, and in addition the primary EU member state to ship its overseas minister to China after the 1989 Tiananmen Sq. bloodbath. Throughout the Dalai Lama’s 5 journeys to Spain, no official authority obtained him.
In 2009, former Chinese language Premier Wen Jiabao referred to Spain as “China’s finest buddy in Europe”. Throughout its beforehand held presidency of the Council of the EU in 2010, Spain advocated for lifting the arms embargo towards China. In 2013, relations have been briefly strained when Spain tried to indict former leaders Hu Jintao and Jiang Zemin by way of common jurisdiction over their violations in Tibet. But, in accordance with a report by the Institut Français Des relations Internationales, Spain has historically been amongst the most accommodating international locations in Europe relating to Taiwan, Tibet, and Chinese language human rights points. In 2018, Madrid welcomed Xi, who describedrelations between China and Spain as “the very best in historical past” throughout his assembly with King Felipe VI. And through the COVID-19 pandemic, defective medical provides obtained by way of China’s “masks diplomacy” didn’t alter Madrid’s “no pasa nada” angle in direction of Beijing.
Nonetheless, within the post-pandemic interval, in tandem with the remainder of the EU, Spain has adopted a extra vital stance in direction of China, leading to extra conditional cooperation primarily based on wariness ensuing from China’s assertive behaviour.
In 2021, Spain’s main telecom firm Telefonica changed components of its beforehand rolled-out 5G tools with gear from Ericsson. In 2022, the Spanish authorities launched a draft Royal Decree on Overseas Investments implementing the EU’s FDI screening mechanism geared toward scrutinising Chinese language investments. The identical 12 months, Spain signed a joint assertion with 50 international locations, expressing concern relating to China’s human rights state of affairs, significantly regarding the Uyghur Muslims. Furthermore, not like fellow Southern European international locations Portugal and Italy, Spain didn’t be part of China’s Belt and Street Initiative. Moreover, the emergence of the far-right get together Vox on Spain’s political scene has resulted in ties with China turning into a think about inside debates.
No extra punching under for Spanish overseas coverage
Regardless of its essential geography surrounded by the Mediterranean Sea and the Atlantic Ocean and its historic ties with the Latin American nations, a triad of challenges involving the nation’s financial woes within the aftermath of the 2008 monetary disaster, unrest emanating from the Catalan separatist motion, and steady home political turbulence has resulted in an underperforming overseas coverage. Spain’s focus was historically restricted to the Maghreb and Mediterranean areas along with managing migration flows from Africa.
However in recent times, the tide has turned beneficial for Spain to emerge from being a passive actor within the EU in direction of a extra international actor. Cracks within the conventional Franco-German guard, in addition to different European member states taking the lead on points together with assist for Ukraine, are offering openings for Spain. Brexit, and the distinction of Italy’s eurosceptic authorities with the refreshingly pro-EU nature of Spanish politics, are alternatives for Spain to garner better affect on the European stage. These have enabled Sanchez to prioritise the worldwide enviornment ever since he took over from his predecessor PM Mariano Rajoy in a no-confidence vote in 2018, emphasising that Spain can be “on the vanguard” of the European debate. In an enormous win for Spanish affect, Josep Borrell, who was Overseas Minister in Sanchez’s authorities, was appointed as the pinnacle of the European Exterior Motion Service in 2019.
For the reason that warfare started, Sanchez has remained a staunch NATO ally and supporter of Ukraine, committing to supplying 10 fashionable Leopard tanks and visiting the nation twice. Rating fourth throughout the EU in its reception of refugees, Spain has welcomedover 170,000 Ukrainian refugees for the reason that begin of the warfare. Spain’s upcoming presidency of the Council of the EU, which is able to prioritise the Union’s ‘strategic autonomy’, will additional provide the nation a chance to broaden its engagement on the European and international stage.
The presidency arrives amidst a extra steady Spanish economic system, with the nation’s March inflation charge at 3.3 p.c being amongst the bottom in Europe partially attributable to its lesser dependence on Russian gasoline. Beforehand, Spain was significantly affected through the pandemic with its GDP falling by 11 p.c in 2020. But the Spanish economic system rebounded by over 5 p.c GDP progress in 2021 supported partially by the Subsequent Technology EU restoration funds.
For Sanchez, the go to to Beijing showcased Spain’s growing international affect within the run-up to nationwide elections scheduled for December 2023, the place polls predict the opposition Fashionable Celebration as forward of Sanchez’s Socialist Celebration. Moreover, Sanchez’s shut relations with each France and Germany, the standard energy brokers within the EU, may even be helpful for Spain’s international ambitions.
Previous his voyage, Sanchez described China as a “top-tier international actor”, urging the world to hearken to its voice. Analysts like Jose Ignacio Torreblanca from the European Council on Overseas Relations imagine Spain is well-positioned to “act as a facilitator” attributable to its comparatively “simple” ties with Beijing. However whereas Madrid could compartmentalise its commerce ties with Beijing away from its stance on the warfare, European Fee president, Ursula von der Leyen has confused that Beijing’s place on the warfare will probably be a “figuring out issue” in EU-China ties.
Whether or not Sanchez can lastly ship on Spain’s geopolitical ambitions stays to be seen. The stakes for Europe are excessive, and after years of punching under its weight, the Eurozone’s fourth-largest economic system’s adoption of a extra pro-active and daring strategy to overseas coverage can solely be welcomed.
Supply: This text was printed by Observer Analysis Basis