The final day of King Felipe’s state visit to China, the first by a Spanish monarch in 18 years and also the first of his reign, was dedicated on this day. Supporting the presence of Spanish companies among Asian giants and … Collaboration with local companies in key industries such as automotive.
This morning (local time), the king visited Gestamp’s facility southeast of Beijing. The Spanish company is Europe’s second largest manufacturer of metal parts. The auto industry has been in China since 2007, arriving there “accompanying customers,” in the words of the company’s Asia CEO Antonio López.
Its nature reflects the sector’s global evolution. Initially, Gestamp primarily supplied products to international car companies, but this space is increasingly being occupied by Chinese electric car companies such as BYD, Xiaomi, and Li Auto. «China is now the automotive capital of the world» said Francisco J. Riveras, Executive President of Gestamp.
In his welcome speech to King Felipe VI, his head supported this statement with “data that speaks for itself.” If China accounted for 3% of global car production in 2000, it now accounts for 33%. In the field of electric vehicles, this percentage rises to 67%.
After the first presentation, the King toured the 83,000 square meter factory, which is operated by 311 employees. The tour ended with a presentation of BAIC branded electric vehicles with self-driving capabilities. Mr. Don Felipe showed great interest, even sitting in the driver’s seat.
The rise of electric vehicles in China is not without controversy. “The global market is flooded with cheap (Chinese) electric cars, the prices of which are kept artificially low by massive state subsidies,” European Commission President Ursula von der Leyen charged in September 2023, when she announced an investigation into allegations of unfair competition that ultimately led to the imposition of tariffs. How to protect strategic industries of potentially hostile actors.
China immediately hit back, doing the same with several European products, the first of which was pork, of which Spain is a major supplier, and pushed even more aggressively behind closed doors to revise its position within the European Commission. After President Pedro Sánchez’s visit to China last September, Spain The vote shifted from supporting community tariffs to abstaining.
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The dispute has been pending resolution ever since, but Economy Minister Carlos Bodhi has expressed confidence in the possibility of reaching an agreement in the form of a minimum price. The outcome of this dispute could accelerate the construction of new electric vehicle factories on European soil. Of these, Spain is BYD’s third choice after Hungary and Turkey, and several sources have suggested that this could be a practical result of a series of high-level visits and renewed rapprochement between the two countries.
In that sense, the army “Fluid communication” with this company, He said the tone of recent conversations had generally been “very positive.” According to a member of the delegation, the state visit helped China “better understand who we are and what we can offer.”
BYD can therefore follow in the footsteps of CATL, the world leader in lithium-ion battery production, which, together with its partner Stellantis, plans to begin construction of an industrial factory in Figueruelas, Aragon in the coming weeks. CATL co-president Pan Jian explained this Tuesday: “We chose Spain based on a number of factors.” “We have a rich talent pool, a number of high-level engineering schools, a very competent government, political stability, a beautiful place, and finally, a deep commitment to renewable energy.”
Before heading to Gestamp, King Felipe convened a meeting of the Spain-China Business Advisory Council, in which he emphasized “predictability, stability and sustainability” as “the three fundamental principles that must define our bilateral relationship”. Some move on to motorize at the end of their visit.
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