Cuerpo defends that the approach to China is not only Spanish, but European, and that it will not be detrimental

Madrid – The Minister of Economy, Trade and Business, Carlos Cuerpo, stated this Monday that the trip to China by the President of the Government, Pedro Sánchez, will not cost Spain and defended that the approach to the Asian giant is not exclusively Spanish, but European.

“I believe that the trip does not surprise anyone; we have been reinforcing relations with a country that is one of the main economies in the world for several years now. It is a rival, a competitor in many areas, but it also has to be a strategic partner. We need to rebalance a relationship that is currently very deficit for Europe with respect to China. I believe that everyone understands this and that it is not solely a Spanish approach, it is a European approach,” he insisted.

In this regard, Cuerpo recalled that the European Commissioner for Trade, Maros Sefcovic, was in China a few weeks ago and the President of the European Commission, Ursula Von der Leyen, traveled to the Asian country a few months ago to strengthen this relationship with China. “And this is also compatible with what we have been saying for many months. That we want an agreement with the United States, which is the main economic and commercial relationship we have right now, that of the United States-Europe,” the minister emphasized.

The EU must have its own voice

Cuerpo, in statements to Telecinco reported by Europa Press, emphasized that the European Union must have “its own voice” in a context where the main geostrategic economic relationships are being restructured globally. “This own voice has been developing for years, for example, in its relationship with China,” he pointed out.

Possibility of diversion of Chinese trade from the US to the EU

When asked whether the decline in Chinese exports to the United States due to the imposition of tariffs could result in an influx of Chinese products to the European Union, Cuerpo admitted that “the diversion of trade is indeed one of the risks posed by the closure of the American market right now.”

“There are two ways to address this. One is, of course, to control at our borders if there is any unjustified increase in imports of certain products and then talk to those exporting countries to prevent this trade diversion. We must maintain dialogue, of course, with China and other major exporting countries,” the minister noted.

Specifically, Cuerpo indicated that they are currently discussing with Spanish companies which alternative markets they would seek for their products. Thus, he revealed that, according to a survey by ICEX of nearly a thousand companies, the five largest potential markets as an alternative to the United States are Canada, Mexico, Germany, China, or France.

“That is to say, our companies also want us to make that effort to open up that Chinese market, which we still believe is more closed than it could be,” the minister pointed out.

The meeting with Bessent was cordial

In this line and when asked whether in the meeting he held a few days ago with the US Treasury Secretary, Scott Bessent, he was warned again that an approach to China would be like “cutting one’s throat,” Cuerpo assured that “no, not at all.”

“It was indeed a frank, open, cordial meeting, in which we reviewed the current situation and the importance of that bilateral relationship, especially between the United States and the European Union, but also between the United States and Spain. The United States is our main market outside the Union, a fundamental partner,” explained Cuerpo, who recalled that the direct foreign investment of Spanish companies in the United States is 115 billion euros.

We must enter into negotiations with the US to find a negotiated solution

Thus, he recounted that this is the message he conveyed to Bessent: the need to strengthen the relationship between the United States and Europe, and to do everything possible to reach an agreement. “They opened the door to reaching a negotiated solution with the European Union; we must enter into that negotiation,” he added.

“Indeed, they pointed out defense spending within the framework of NATO as one of the issues that concerns them, and there we, of course, reminded them of Spain’s commitment to reach 2% of GDP ahead of schedule, as well as the joint commitment of the European Union to increase our efforts in security and defense,” he emphasized. (April 21)