Jointly Building a Future of Shared Prosperity

Spain is an important country and a major economy in the EU. The year 2023 witnessed the 50th anniversary of the establishment of China-Spain diplomatic relations, and this year marks the 20th anniversary of the establishment of their comprehensive strategic partnership. Over the past years, the two countries have strengthened political mutual trust, scaled new heights in economic and trade cooperation, and made significant achievements in people-to-people exchanges. The friendship between the people of both countries has also grown stronger. The mutually beneficial cooperation between China and Spain is not only an epitome of but also a model for the development of China-EU relations.

Top-level guidance strengthens strategic mutual trust

Last November, President Xi made a stopover in Spain’s Gran Canaria Island on his way to the APEC summit in Peru, and Zhao Leji, chairman of the Standing Committee of the National People’s Congress, paid an official goodwill visit to Spain later the same month. In 2023 and 2024, respectively, Spanish Prime Minister Pedro Sánchez made two visits to China. On both occasions, leaders of the two countries held in-depth discussions on bilateral relations, and laid the way for the two countries to deepen cooperation.

President Xi said, the two sides should adhere to the original intention of establishing their diplomatic ties based on mutual respect and equal treatment, take a holistic and long-term view, and add new dimensions to bilateral ties. He called on both sides to build long-term and stable relations with strategic determination, and push bilateral relations to a higher level. Sánchez said, Spain views its relations with China from a strategic height, adheres firmly to the one-China policy, is willing to be a trustworthy partner of China, and looks forward to deepening the comprehensive strategic partnership between the two countries and making greater contributions to the well-being of the two peoples.

Under the guidance of the heads of state of both countries, the comprehensive strategic partnership between China and Spain has deepened and become more substantive.

Growing bilateral trade increases cooperation opportunities

China-Spain cooperation has a strong foundation, as the two economies are highly complementary. Bilateral trade in 2024 increased by 1.6 percent year on year, with the trade of goods remaining stable at around US$50 billion. China is now Spain’s largest trading partner outside the EU. Spanish products like red wine and ham have become popular gifts among Chinese people.

Bolstering this growth is part of the continuous improvements being made to logistic and transport networks connecting the two countries. During the year 2024 alone, the Yixin’ou (Yiwu-Madrid) freight train service completed 1,738 trips, transporting 143,000 TEUs (twenty-foot equivalent units), realizing a year-on-year increase of 7.8 percent. Notably, the number of TEUs on return trains increased by 12.8 percent. With the total volume of import and export goods reaching US$4.6 billion, this train service significantly facilitated Spanish exports to China.

China welcomes more high-quality agricultural products from Spain to enter its market and expand the food choices of Chinese families. After much communication, relevant authorities of both countries reached agreements on the import of raw wool, breeding poultry, and hatching eggs from Spain. Negotiations are also underway regarding the import of Spain’s specialty agricultural products such as farmed fish and cherries. Such cooperation allows Spain to share in the opportunities presented by China’s modernization drive.

Cooperation yields win-win results

In 2024, China’s direct investment flow to Spain reached US$170 million, marking a year-on-year increase of 119.6 percent. By the end of 2024, the stock of China’s direct investment in Spain had amounted to US$1.86 billion.

Chinese companies are increasing their investments in Spain, with clean energy, electric vehicles, and digital transformation becoming new highlights of bilateral cooperation. China Three Gorges Corporation has invested in renewable energy projects, tapping into Spain’s wind and solar resources to advance its green transition. Chery Automobile has established a joint venture plant with Spanish car manufacturer Ebro-EV Motors. Envision Group is building a lithium iron phosphate battery gigafactory in Spain, and CATL reached an agreement with Stellantis to co-invest in a battery plant there as well. Other Chinese enterprises with operations in Spain, such as Huawei, ZTE, COSCO, Cainiao, and 4PX, have created thousands of local jobs, making positive contributions to Spain’s economic growth.

At the same time, Spanish investments are also expanding in the Chinese market. In 2024, 150 Spanish-funded businesses were created in China, representing a year-on-year increase of 32.7 percent, and the foreign investment they utilized amounted to US$260 million, an increase of 129.9 percent compared to the previous year. At the end of 2024, there were 3,260 Spanish-invested businesses in China, with a cumulative foreign investment in actual use reaching US$4.64 billion. Large Spanish companies are establishing manufacturing and research & development bases in China, actively integrating into China’s automotive industrial chain.

As Chinese and Spanish enterprises increase two-way investments and collaborate in innovation, they provide strong momentum for both countries’ economic transformation as well as inject fresh vitality into the restructuring of the global industrial chain.

Cultural cooperation boosts inter-civilizational exchanges

Both China and Spain are ancient civilizations, cultural powerhouses, and major tourist destinations. Cultural diversity and social inclusion are valuable assets, of which both take pride. The two countries have held Year of Culture and Tourism activities for each other, which sparked a surge in cultural exchange and mutual learning. China has introduced a unilateral visa-free policy allowing Spanish citizens to enter China visa-free for up to 30 days, and Spain also expressed its willingness to introduce more measures to facilitate personnel exchanges between the two countries.

Frequent exchanges in education, tourism, and sports have also brought the two peoples closer. Instituto Cervantes, a nonprofit organization created by the Spanish government for promoting the study and teaching of Spanish language and culture, has opened a new branch in Shanghai. The first animated film jointly produced by China and Spain, Dragon Keeper, has been released. Queen Sofia attended the public opening event for giant pandas Jin Xi and Zhu Yu at the Madrid Zoo, celebrating the “panda friendship” that has lasted over 40 years between the peoples of both countries including members of the Spanish royal family. These events highlight the cultural dimension of the comprehensive strategic partnership between the two countries and lay a solid public foundation for future cooperation and development of bilateral ties.

Communication and cooperation to defend multilateralism

China and Spain uphold multilateralism, advocate for openness and cooperation, and are committed to jointly maintaining the multilateral trading system. They follow the rules of the World Trade Organization and market principles, support free trade and open markets, oppose trade wars, and seek to resolve trade friction through dialogue and consultation.

Both countries are dedicated to jointly safeguarding world peace and stability, defending international fairness and justice, and promoting global common development to bring more stability into the international community. They support the United Nations’ central role in the international multilateral system, join forces in addressing global challenges, and work together to accomplish the United Nations 2030 Agenda for Sustainable Development.

The development of China-Spain relations has fully demonstrated, as President Xi pointed out, that as long as both sides show mutual respect, treat each other as equals, and maintain candid dialogue, they can advance cooperation and achieve significant outcomes. China will continue to open its doors wider and is willing to share the opportunities in its modernization with the rest of the world. Its development momentum is unstoppable. It firmly believes that China and Spain are cooperative partners that trust and complement each other. Together, we will create a better future of peace and development for the world.

Yao Jing is Chinese ambassador to Spain.