Speaking at Tsinghua University, Sanchez said trade flows between China and the EU were “imbalanced” and called on Chinese authorities to open their markets to address a widening deficit. “We need China to open up so that Europe does not have to close itself off,” he said, adding that the deficit grew by 18 percent last year and posed risks over the medium to long term.

Sanchez’s visit, his fourth to China in four years, comes as Madrid seeks to position itself as a bridge between Beijing and the 27-member EU amid signs of strain in transatlantic relations. Recent tariff measures and policy shifts under Donald Trump have prompted several Western governments to pursue closer economic engagement with China.

Spain recorded a trade deficit of 42.3 billion euros ($49.1 billion) with China last year, with Sanchez noting that the shortfall accounts for 74 percent of the country’s overall trade deficit. Spain’s population of roughly 50 million contrasts with China’s more than 1.4 billion, underscoring the structural imbalance in bilateral trade.

The Spanish government is seeking improved access for agricultural and industrial exports and exploring opportunities for joint ventures in the technology sector. Officials also aim to attract Chinese investment into Spain and secure access to critical raw materials.

During the visit, Sanchez is scheduled to tour facilities linked to Xiaomi and the Chinese Academy of Sciences, before holding talks with senior Chinese leaders including President Xi Jinping and Premier Li Qiang.

The trip follows a period of diplomatic friction with Washington after Trump threatened to reduce trade ties with Spain, citing Madrid’s refusal to allow use of its military bases for U.S. strikes against Iran, a key Chinese economic partner.

Spain’s exports to China rose 6.8 percent in 2025, according to government data, reflecting strengthened bilateral engagement. During Sanchez’s previous visit in April 2025, Beijing agreed to expand market access for Spanish products including pork and cherries.

Chinese foreign ministry spokeswoman Mao Ning described Spain as “an important partner of China within the EU,” signaling Beijing’s willingness to deepen bilateral cooperation.

Speaking at the annual China Development Forum in Beijing, Li said China would expand imports of high-quality foreign goods and work with trading partners to promote more balanced global trade, according to state media.

Li’s remarks come as China faces mounting concerns from major economies, particularly the United States and the European Union, over its trade practices, industrial overcapacity and reliance on Chinese exports.

While he did not directly reference the record surplus, his comments indicated an effort to address imbalances that have strained international economic relations.The forum, which brings together foreign business leaders, policymakers and economists, is a key platform for Beijing to outline its economic priorities and signal openness to global investors.

In a separate address, central bank governor Pan Gongsheng said assessments of global imbalances should account for both goods and services trade, as well as financial flows. He noted that while China runs the world’s largest goods surplus, it also posts the largest services deficit.

Pan added that China does not intend to gain a competitive trade advantage through currency depreciation, responding to longstanding concerns from trading partners over exchange rate policies.

Beijing is also attempting to reverse a decline in foreign direct investment, which fell 5.7% year-on-year to just over 92 billion yuan ($13.36 billion) in January, following a 9.5% drop in 2025.

In December, authorities expanded incentives for foreign investors by adding 200 sectors eligible for benefits such as tax breaks and preferential land use, focusing on areas including advanced manufacturing and modern services.

Efforts to stabilise trade ties come as geopolitical tensions persist. U.S. President Donald Trump recently postponed a planned visit to Beijing to meet President Xi Jinping due to the Iran conflict, delaying talks aimed at easing economic tensions between the two countries.