I recently read an article, Spain Opens Its Doors to China as a European Trade War Looms, which discussed Spain's strategy of opening up to Chinese investment.
At first, I didn’t find it particularly newsworthy—until a friend mentioned the other day that she had gone shopping at TJ Max and noticed plenty of items still labeled "made in China." She commented that trade between China and the U.S. clearly hasn’t slowed down.
According to the article, Spain is positioning itself as a "connector" country, attracting Chinese investment by staying neutral on European tariffs for electric vehicles. This strategy allows Spain to strengthen its economic ties with China amid rising Western tensions. Similar to Mexico and Vietnam, connector countries provide Chinese firms with indirect access to the U.S. market by helping them bypass import duties.
This emerging approach seems to be part of a broader trend among nonaligned countries like Spain to leverage their neutrality, using their status as trade bridges to attract Chinese investment. Spain’s decision to abstain from the EU vote on tariffs for Chinese electric cars underscores its intent to deepen economic relations with China, despite tensions with the West.
Connector countries have seen rapid growth in Chinese trade and investment, benefiting from job creation, infrastructure projects, and manufacturing expansion. By offering Chinese companies indirect access to the U.S. market, these nations are emerging as key players in global trade, sidestepping tariffs and bolstering their own economies.
However, Spain’s stance, while advantageous to itself, diverges from the EU’s unified policies on China. With the U.S. election approaching, countries like Spain could face increasing pressure in the form of stronger tariffs and trade restrictions. They might encounter repercussions for facilitating trade in ways that sidestep sanctions.
I think of a Chinese verse, "山穷水尽疑无路，柳暗花明又一村" (shān qióng shuǐ jìn yí wú lù, liǔ àn huā míng yòu yī cūn). This translates roughly to "When the mountains and rivers seem blocking all the way forward, willows and flowers appear, opening to another village." It describes the situation where things seem impossible or all paths seem blocked, new opportunities often emerge unexpectedly. It's similar to the saying when the door closes, the window opens.
Finally, reflecting on my friend’s observation about "made in China" items, it seems likely that connector countries like Spain are contributing to the continued flow of Chinese goods into Western markets.