Spanish regions are pursuing Chinese battery and car investment as officials push for common European Union (EU) foreign investment rules ahead of talks with Beijing on trade arrangements.
Reuters reported that Spanish officials want faster approval of a “Made in Europe” law.
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The proposal would require local content and employment conditions, technology transfer, and limits on asset ownership for foreign investors in strategic sectors.
At present, some regions in Spain apply these conditions to major investments case by case.
There is no common set of criteria across the country, and terms of some agreements are not public.
Catalonia and Extremadura are among the autonomous communities presenting themselves as China’s “gateway to Europe”.
They have opened offices in China and created China-focused teams in Spain to attract investors.
SAIC and Chery, along with battery makers CATL and AESC, are establishing electric vehicle and battery operations in Spain.
These projects are being developed either independently or in joint ventures with European companies.
BYD and Hongqi are also reportedly assessing possible locations.
Spain is Europe’s second-largest car producer after Germany. The automotive industry employs 600,000 people and represents 10% of GDP.
The country has few strong domestic brands and mainly serves as a manufacturing base for foreign carmakers.
That has left Spain more open to Chinese automotive investment than Germany.
In Germany, companies including Volkswagen have rejected the possibility of Chinese rivals acquiring plants amid concerns over overcapacity.
Spain already requires non-EU investors in critical infrastructure and technology to submit detailed screening information.
This covers ownership structures, financing sources, previous investment activity, and a three-year business plan with employment and investment commitments.
The government has also established a Committee for Strategic Investments to review these transactions.
Completed deals show different levels of commitment.
CATL will bring up to 1,700 Chinese workers to build its battery plant in Zaragoza. It also plans to recruit and train 4,000 Spanish employees to operate the facility.
The company said it plans to source more than 70% EU content at full capacity. However, its agreement did not include binding local sourcing obligations.
AESC Battery Spain, which is majority owned by China’s Envision Group, has pledged 40% European employment, 40% Spanish management, and worker training programmes for its Extremadura facility by 2030.
In Galicia, SAIC is planning to build its first European plant. A spokesperson for the regional government told Reuters that the agreement did not include employment and sourcing conditions.
The spokesperson said those conditions would instead fall under the future Made in Europe law.
“Spain is committed to attracting productive, high-value-added investment that fosters technological development, innovation, and quality employment while establishing long-term local roots and contributing to more secure and diversified supply chains,” an economy ministry spokesperson told Reuters.
Last month, Geely reached an agreement to take over part of a Ford Motor factory in Spain.
