Spain has made a dangerous move to benefit from the trade war between China and Europe. And Catalonia is the key piece

From today, October 31, Europe begins to charge new tariffs on electric cars imported from China. A protectionist measure against the threat of their artificially cheap cars. The new rates are up to 45.3%, compared to the 10% that had been applied.

China has already threatened possible retaliation against these new taxes, which were approved by major economies such as France and Italy. For example, higher tariffs for European cars or stopping certain major imports. Now they are also considering stopping Chinese firms’ factories in these countries.

In the midst of this trade war that has only just begun, Spain, which abstained from the vote, could benefit. In fact, he has already made moves to do so. Fishing in troubled rivers.

China wants to paralyze the factories of its car brands in pro-tariff countries

According to Reutersthe Chinese government would have urged its manufacturers to stop their large investments in the European countries that voted in favor of the tariffs. In total, 10 EU countries voted yes to the new rates (France, Italy, Greece and Poland among others), five voted against (Germany and Hungary among them) and 12 abstained, as is the case of Spain. . By large investments, we mean factories.

Italy and France are two of the states that have been negotiating with Chinese brands to set up factories in their territory. It represents an obvious benefit for both parties: Chinese firms save on tariffs and these countries would have access to the technology and advances of the People’s Republic, today the leader in electric cars. This could change if manufacturers in the People’s Republic stop these investments.

Although it is noted that this movement could be a measure of pressure in China’s negotiation with Europe. Although the tariffs have already been approved and will be applied, the community government leaves the door open to explore “alternative solutions” that it is working with the Chinese executive.

Today, The European market is the most important for China outside its borders: it hosts more than 40% of its exported zero-emission cars. North America is no longer an option, after raising 100% tariffs on its models under the Biden government.

Spain, China’s new favorite partner in Europe?

With a Europe divided into more or less protectionist positions, the Spain has been pragmatic. By abstaining, it has not gone against the European predominance, but it is more out of the focus of possible retaliation from China.

To a large extent, Spain finally opted for the warmer vote due to the open investigation into meat exports from Europe to the People’s Republic. Our country is the main exporter of pork to China, receiving 21% of them. A business that generated 1,223 million euros last year. “We do not need another trade war,” defended Pedro Sánchez.

It has also begun to strengthen ties with the Asian country. “China is a key economic partner for the European Union and Spain”, the Minister of Economy, Carlos Corpus, has pointed out. It is doing so as a two-way strategic partner.

Barcelona and Tarragona, gateway to imports of Chinese electric cars. On the one hand, Spain wants to be one of the main access points from China to Europe through ports such as Barcelona or Tarragona.

In July, the port of Barcelona approved the construction of a terminal with direct access to the railway network and thus distribute them to the different European markets. In fact SAIC, to which MG belongs, already uses this port as a download pointas does Tesla. And port authorities in Tarragona are trying to attract new clients in the People’s Republic.

Factories of Chinese firms in Spain. Regarding factories, the only agreement that Spain has signed firmly for now is with Chery: it will assemble models from several of its brands in the old Nissan Barcelona from the Free Zone. Among them Omoda and Jaecoo. Added to this is Ebro, a Spanish brand that is resurrected under the umbrella of this Asian giant.

At first it was proposed that this factory in Barcelona will assemble ready-made kits from Chinathus avoiding the new rates. Although, due to the definitive imposition of tariffs, its plans have been delayed for now and filming is not expected to begin for another year.

Spain has tended to take a backseat to other European powers to become a partner of the People’s Republic. But there could be a change of course thanks to his more conciliatory stance.

The automobile industry in our country is one of the most powerful: it is the second largest manufacturer in Europeallocating 80% of what is produced in the 17 Spanish plants to export. The automobile contributes around 8% to Spain’s GDP.

Spain has been in the pools to host BYD factories, but the firm finally chose to agree to them with Türkiye and Hungary. This does not indicate that it will change, since Hungary voted against the new tariffs and Turkey does not belong to the EU, although it does have import agreements to Europe with low rates. But Spain is in a good place to welcome MG, being one of the brands with the highest rates. The Government is optimistic about achieving this agreement.