Spanish Prime Minister Sanchez says EU should rethink China EV tariff plan

Spanish Prime Minister Pedro Sanchez said the European Union should reconsider its plan to impose additional tariffs of up to 36 percent on Chinese-made electric vehicles, saying the bloc does not need a trade war with Beijing.

"I have to be blunt and frank with you that we need to reconsider — all of us, not only member states but also the Commission — our position towards this movement," Sanchez told reporters on Sept. 11 in Kunshan, China, following a four-day trip in which he met with President Xi Jinping.

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

Spain has already won a major investment from China's Chery Auto, which will start building cars from its Omoda volume brand in a former Nissan factory in Barcelona this year.

China and the EU have been locked in a trade dispute after Brussels decided to increase tariffs on Chinese-made electric vehicles, claiming that Chinese companies unfairly benefit from state subsidies and are flooding Europe with excess production.

In response, Beijing launched anti-dumping investigations into EU exports of brandy, dairy and pork products. Spain, as Europe's largest pork exporter, is particularly affected.

In their meeting on Sept. 9, Xi told Sanchez he would like to see ties strengthen, particularly in high-tech and new energy developments, while also signaling his frustration with the EU pushback on Chinese firms.

"We hope Spain will continue to provide a fair, just, safe and non-discriminatory business environment for Chinese companies investing and operating in Spain," Xi said, according to a readout from the official Xinhua News Agency.