Chart of the Week: Spain deepens trade ties with China

Spain’s trade relationships have shifted over the past two decades, with China emerging as a key economic partner at the expense of traditional EU allies like Germany and France. In 2024, Spain imported €45 billion worth of goods from China — over 2% of its GDP — while exporting just €7.5 billion in return. Imports from both China and Germany now account for roughly 11% of Spain’s total imports, highlighting China’s rise as an equally vital trade source. Much of what Spain buys from China includes machinery, particularly solar panels and lithium-ion batteries, while electric vehicle imports have risen dramatically in recent years. Last year, Spanish Prime Minister Pedro Sánchez urged the EU to reconsider proposed import tariffs on China-made EVs, possibly out of concern over retaliatory measures that could hurt key Spanish exports like pork. More recently, Sánchez’s meeting with President Xi Jinping in April drew criticism from Washington and signalled Spain’s divergence from the broader European approach to China. At the same time, Chinese investors like battery giant CATL are ramping up investment into Spain, attracted in part by its growing economy — 3.2% in 2024, one of the highest growth rates across the Euro area— and as a potential route into the European auto market.

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The views expressed in this article are the views of the author, not necessarily those of LSEG.

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