Chinese President Xi Jinping’s strong message during his meeting with Spanish Prime Minister Pedro Sanchez signals a pivotal moment in global trade diplomacy. With the United States' continued imposition of tariffs on Chinese and other foreign goods, the Chinese leader is now turning to Europe for solidarity in resisting what he called "unilateral bullying".

This high-level dialogue marks the first public response from President Xi since the US ramped up tariffs, a move that has not only impacted China but also stirred fears of economic instability across global markets.

China’s Strong Stand Against US Tariff Actions

In his direct message to the European Union, Xi Jinping made it clear that China would not submit to pressure. “There is no winner in a tariff war,” Xi stated, “and going against the world will only result in self-isolation.”

He also highlighted that China’s progress over the past 70 years has been achieved through self-reliance and relentless effort, not through external handouts. “China does not flinch from any unjust oppression,” he declared, firmly positioning the country as a resilient global power capable of weathering economic storms.

China's Call for EU Partnership and Multilateral Cooperation

Xi Jinping stressed the importance of building stronger EU-China ties, especially during turbulent times. As reported by state-run Xinhua News Agency, the Chinese President advocated for joint international responsibility and collective resistance against trade bullying.

In a world where trade protectionism is on the rise, Xi’s appeal to Europe to join forces with China signals an attempt to reframe global alliances, especially as relations between Beijing and Washington deteriorate further.

Spain's Cautious But Optimistic Approach to China

Spanish PM Pedro Sanchez responded to Xi’s overtures with a tone of pragmatism and optimism. In a post-meeting press conference, Sanchez admitted that Spain and Europe suffer a significant trade deficit with China, with Spain importing around €45 billion worth of goods from China annually while exporting only €7.4 billion.

Despite this imbalance, Sanchez asserted that trade tensions must not hinder the EU-China partnership. He emphasised the need to work towards rectifying the deficit while maximising the mutual benefits of diplomatic and economic collaboration.

EU’s Dilemma: Balance Between Trade Defence and Diplomatic Relations

Sanchez’s visit arrives at a critical juncture as the European Union reviews its trade policies amidst growing concerns over the US-imposed tariffs. With major markets thrown into disarray and global supply chains under threat, European leaders are being pushed to reevaluate long-term trade strategies.

Sanchez had previously broken ranks with the broader EU position by opposing high tariffs on Chinese electric vehicles, which the bloc proposed as a defensive move to shield European manufacturers. He instead called for a "fair trade order", indicating Spain’s inclination towards balanced engagement rather than confrontation.

Xi's Broader Strategy: Realigning Global Trade Partnerships

The Chinese President’s approach during this meeting is indicative of a larger strategy to realign global partnerships. By inviting the European Union to stand against “unilateralism” and “bullying”, Xi is pushing for a multipolar trade order where economic cooperation and mutual growth take precedence over protectionism and competition.

This vision resonates strongly with countries like Spain that depend on exports, imports, and investment ties with both the East and the West.

Recent Diplomatic Efforts: Spain’s Expanding Asia Outreach

Sanchez’s visit to China is part of a broader diplomatic mission. Just days earlier, he was in Vietnam, where he and Prime Minister Pham Minh Chinh signed a joint declaration to elevate Spain-Vietnam relations to a comprehensive strategic partnership.

This showcases Spain's broader commitment to strengthening its position in Asia-Pacific diplomacy, leveraging relationships with China and Southeast Asia to boost economic cooperation.

China-EU Relations: Walking a Tightrope

The relationship between China and the European Union remains complicated. On the one hand, Europe seeks to protect its industries from what it perceives as unfair competition from state-subsidised Chinese enterprises. On the other hand, the EU values economic engagement with China, particularly for industries like energy, infrastructure, and digital innovation.

Xi Jinping's diplomatic push aims to sway the EU away from Washington’s aggressive tariff-centric approach, offering long-term cooperation and shared growth as alternatives.

Economic Reality: The Trade Imbalance Challenge

Despite the positive tone of the meeting, the stark trade imbalance remains a significant issue. With China exporting far more to Spain and the broader EU than it imports, concerns over market access, investment barriers, and regulatory challenges still dominate the EU’s agenda.

Sanchez’s honest acknowledgment of the trade gap shows that Europe is not unaware of the economic disparity but is still willing to explore ways to strengthen the relationship without escalating tensions.

Conclusion: A Defining Moment for Global Trade Diplomacy

Xi Jinping’s meeting with Pedro Sanchez represents a strategic pivot point. With the US continuing its aggressive tariff campaign, China is turning towards Europe as a partner for balance and cooperation. Meanwhile, Spain appears open to deeper engagement with China, while advocating for fairness and mutual benefit.

This evolving dynamic may shape the future of global trade relationships, especially as countries seek to diversify their partnerships in a multipolar world.

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