Spain may attract €3 billion more from China

Chinese companies are in talks to invest an additional €3 billion ($3.3 billion) in Spain. This comes as Spain takes a "pragmatic approach" to its relationship with China, according to the Chinese ambassador in Madrid. This new investment will mostly be focused in southern Spain. It follows about €7 billion in investments that Chinese firms announced since September. So far, most of these investments have been aimed at the auto sector. Spain offers lower energy costs and a diverse automotive industry, which are attracting major investments from companies like Volkswagen and Stellantis. These companies are looking to strengthen their presence in the electric vehicle (EV) supply chain. Spanish Prime Minister Pedro Sanchez's positive relations with China are also drawing interest. Sanchez previously suggested that the European Union should reconsider extra tariffs on Chinese EVs during his visit to China last year. Currently, significant investments in the EV supply chain involve partnerships with European firms. For example, Volkswagen is building a €10 billion hub in Valencia for EV battery cells, while Stellantis is partnering with the Chinese battery maker Contemporary Amperex Technology Co. for a €4.1 billion battery plant in Aragon. Additionally, Leapmotor International plans a €200 million factory investment in Zaragoza.