• 2 months ago
The Spanish Prime Minister says he believes that honest dialogue can resolve trade tensions between China and the European Union. CGTN’s Ken Browne explains why trade – in EVs and pork products, among much else – is at the forefront of negotiations.
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00:00Fears of a trade war between Europe and China have grown through a summer of rising tension.
00:06In July, the European Commission announced tariffs on Chinese electric vehicles of between
00:1017 and 38 percent, a blow to the rapid rise of companies like BYD.
00:16In response, China announced anti-dumping investigations into European pork in June,
00:22and turned the temperature up again in August with more investigations into European dairy.
00:28Harsh pork products like these are the ones in the firing line, and Spain would suffer
00:31most from any pork tariffs.
00:34Last year, it sold over 1.5 billion dollars' worth to China, more than any other European
00:39nation.
00:40Good news, then, that the meeting between President Xi and Prime Minister Sánchez went
00:44well on Monday, according to one source, saying that the two leaders found understanding and
00:49harmony.
00:51President Xi urged Sánchez to play a constructive role in resolving trade disputes during that
00:56meeting, and Spanish media says that Sánchez is positioning himself as a negotiator between
01:01the EU and China.
01:03In terms of relations between both the European Union and China, Spain is firmly committed
01:09to promoting and encouraging dialogue, negotiation, and balanced agreements that benefit both
01:14the European Union and China.
01:17We want to build bridges and together promote fair trade.
01:22The Spain-China relationship is at a high point after successful celebrations of 50
01:27years of official diplomatic relations in 2023.
01:32Hopes in the EU are that Sánchez can use this relationship to help resolve these trade
01:37issues.
01:38And for Spain's pork industry, nothing could be more important right now.
01:43Spain having done so much to increase production, with a view to China, there's no doubt that
01:48there would be a knock-on effect.
01:51Absolutely none at all, and that could include reduced production, maybe closure of some
01:58pork plants, and a knock-on effect for employment in those plants and farmers.
02:03So it is a really big issue, which is why I think these negotiations that are taking
02:08place are going to be followed very closely in Spain and elsewhere in Europe.
02:13The EU continues to walk a geopolitical tightrope in following the lead of its close ally, the
02:19United States, which imposed 100% tariffs on Chinese EVs.
02:24Brussels, however, will want to avoid sparking a deeply damaging trade war with its third
02:30biggest trade partner, a relationship worth over three-quarters of a trillion dollars
02:36a year.
02:37Meanwhile, Sánchez continues to express a message of dialogue and compromise in China.
02:42Ken Brown, CGTN, Madrid.

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