China, EU should build bridges, avoid trade war: Spanish PM

Spanish Prime Minister Pedro Sanchez said on Wednesday there does not need to be a trade war between the European Union and China, and the two sides should seek to find a compromise around planned tariffs.

Sanchez made the remarks while speaking at an event at Mondragon Industrial Park in Kunshan, a city neighbouring Shanghai.

He was addressing the European Commission’s move to conduct an anti-subsidy investigation into EVs made in China and the EU weighing hefty tariffs. The EU has revised some duties or lowered final proposed tariffs, which members are expected to vote on in October.

This week, China renewed negotiation efforts seeking to overturn the proposed duties on Chinese EVs.

When asked whether Spain would reconsider its vote on EU tariffs on Chinese made EVs, Sanchez said: “I have to be frank, we have to reconsider our position, all of us. Not only the member states but also the commission.”

“We don’t need another war, in this case a trade war. I think we need to build bridges between the European Union and China, and from Spain we will be constructive and try to find a compromise between China and the European Commission,” Sanchez said.

Sanchez met local business people and entrepreneurs at an event before the press conference. He also spoke to local government officials.

He was in China for a regular state visit. On Monday, in a meeting with China’s President Xi Jinping, he also said hehoped the European Union could avoid a trade war with China.

“The government of Spain wants to consolidate the growth of our trade relations and investment with China, with a focus on green and innovative industries and avoiding that trade and geopolitical tensions damage them,” Sanchez said on Wednesday.

“Nevertheless, as I said earlier, I believe that it is undeniable that these relations need to be balanced.”