Headlines
Xi pitches closer ties to Spanish king as Madrid courts Chinese investment
Published by Global Banking and Finance Review
Posted on November 12, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 12, 2025
3 min readLast updated: January 21, 2026
Xi Jinping and King Felipe discuss boosting China-Spain relations, focusing on economic and diplomatic ties amid global shifts.
BEIJING (Reuters) -China's President Xi Jinping told Spain's King Felipe on Wednesday that the world's second-largest economy seeks to work with Madrid to boost the global influence of both nations, as the heads of state met in Beijing ahead of a signing ceremony.
Felipe is the first Spanish monarch in 18 years to make a state visit to China, as Madrid leads the European Union in courting Beijing and seeks to expand its diplomatic footprint across the Asia-Pacific region.
China, for its part, is eager to move past trade tension with the 27-strong bloc over its heavily subsidised electric vehicles industry, as U.S. President Donald Trump's tariffs weigh on exports.
CHINA SUGGESTED RESUMING INVESTMENT TALKS
Last week China proposed the resumption of investment talks frozen since 2021.
"The world needs more constructive forces dedicated to peace and development," Xi told Felipe during their meeting in Beijing's Great Hall of the People, flagging change and turbulence in the international situation.
"China stands ready to work hand in hand with Spain to build a comprehensive strategic partnership," Xi added, saying such ties would be more strategically steady, more dynamic, and more influential globally.
State broadcaster CCTV said Xi and Felipe attended a document signing ceremony after the talks, but gave no details.
MADRID STEPS UP ECONOMIC ENGAGEMENT
Madrid has stepped up economic engagement with Beijing after the EU's decision to impose tariffs on Chinese-made electric vehicles in June 2024.
It has sent Prime Minister Pedro Sanchez twice to promote Spain as an investment destination, particularly in automotives, green technologies and other emerging industries.
But as Europe's largest exporter of pork products, Spain finds itself caught in the middle of tension between China and the European Commission, which handles the bloc's trade policy, as the pork items face retaliatory tariffs of up to 62.4%.
As China's top pork supplier, Spain sells it about $1.2 billion worth of meat cuts and byproducts each year, contributing roughly a fifth of its imports.
PATH OF SUBTLE DIPLOMACY
The king offers Madrid another path, that of the subtle diplomacy a constitutional monarch can wield, delivering messages that need not be pinned to the elected government when ties are strained or politically sensitive.
"The friendship between Spain and China undoubtedly benefits both peoples and is consistent with two countries with a long history and a global vocation," Felipe told his host.
"A relationship of trust has been forged," he added.
In April the United States likened Spain's decision to pursue closer commercial ties with China to "cutting your own throat," while the European Union, as a whole, remains concerned about trade imbalances and Beijing's relationship with Russia.
(Reporting by Joe Cash; Editing by Himani Sarkar and Clarence Fernandez)
Foreign investment refers to the investment made by an individual or entity in one country in assets or businesses located in another country.
Economic diplomacy involves the use of diplomatic methods to promote a country's economic interests, including trade, investment, and economic cooperation.
An investment strategy is a plan designed to guide an investor's decisions on how to allocate resources to achieve specific financial goals.
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