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US envoy warns Spain to be 'very careful' in deepening ties with China

Published by Global Banking & Finance Review

Posted on May 27, 2026

3 min read

· Last updated: May 27, 2026

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US envoy warns Spain to be 'very careful' in deepening ties with China

US Concerns Over Spain's Relationship with China

(This story has been refiled to remove the images)

By Aislinn Laing

Ambassador's Warning on Critical Sectors

MADRID, May 27 (Reuters) - Spain must proceed very carefully as it deepens its relationship with China to keep it out of critical sectors such as data, defence and telecommunications where Beijing seeks to dominate, Benjamin Leon, the U.S. Ambassador to Spain, said on Wednesday. 

Concerns Over Huawei and Security Risks

In one of his first public speeches since taking the job in February, Leon raised concerns that public contracts had been awarded to companies working with Huawei, the Chinese tech giant that Washington says poses "an unacceptable risk" to U.S. national security.

"I don't think that attains the level of security at which Spain and the United States are exchanging (information)," he said. "If Spain ensures that China is kept out of critical areas, why not negotiate (with Beijing). But I see that they are starting to penetrate into critical areas and Spain must be really careful about this."

China's Strategic Influence and European Response

"China seeks to dominate critical technologies. It uses unfair trade practices and economic coercion to expand its strategic influence. And that poses real risks to our supply chains, our research, and our security," he said, calling on Europe to protect its research, intellectual property and democratic values.

China has on numerous occasions denied Washington's accusations of unfair practices and espionage.

US-Spain Relations and Defence Issues

Relations between President Donald Trump's administration and Spain's leftist government have been strained by Madrid's refusal to adhere to a commitment made by NATO members to raise defence spending to 5% of GDP and to let the United States use its military bases and airspace in the war against Iran. 

Potential Sanctions and Diplomatic Tensions

In October, Trump suggested he might apply economic sanctions against Spain for failing to raise defence spending. 

Leon said that Spain had "frustrated" Trump, and said the decision on how to proceed was solely the president's, but played down chances of U.S. economic or military sanctions.

Prospects for Continued Cooperation

"As I see it, there will always be a compromise between Spain and the United States... One way or the other we will find ways to keep working and improving our relationship," he said.

Strategic Importance of Naval Bases

He described the U.S.-Spanish naval bases in southern Spain of Rota and Moron as "fundamental bases for our collective defence" - amid fears the U.S. drawdown of troops in Europe might impact Spanish installations. 

"We live in very dangerous times. Europe must be prepared to defend itself. The U.S. will be at its side," he said.

(Reporting by Aislinn Laing, editing by Andrei Khalip and Sharon Singleton)

Key Takeaways

  • US warns Spain against allowing Chinese firms into critical infrastructure such as data, defence and telecom sectors.
  • Spain’s contract with Huawei to store judicial intercepts (€12.3m) has drawn criticism from both US lawmakers and the European Commission over security and foreign interference risks.
  • Spain has been gradually reducing Huawei exposure—e.g., Telefónica’s 5G contracts are being phased out in line with EU guidance—while still weighing economic benefits of China ties.

Frequently Asked Questions

Why did the US envoy warn Spain about deepening ties with China?
The US envoy cautioned that China seeks to dominate critical sectors like data, defence, and telecommunications, which could pose security risks to Spain and its allies.
What concerns were raised about Huawei in Spain?
The ambassador expressed concern over public contracts awarded to companies partnering with Huawei, citing security and espionage risks.
How do current US-Spain relations impact defence and military cooperation?
Relations have been strained by Spain's reluctance to increase defence spending, but both sides still consider naval bases in Spain key for collective defence.
Has China responded to US security accusations?
China has repeatedly denied US accusations of unfair trade practices and espionage.
Will US-Spain relations continue despite disagreements?
The US envoy believes there will always be a compromise, and both countries will keep working to maintain their partnership.

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