Sánchez travels this week to Vietnam and China, two of the main victims of Trump’s tariffs

Eduardo González The President of the Government Pedro Sánchez will tour Vietnam and China between Wednesday and Friday of this week. These two countries, with 46 and 34 percent respectively, are among the hardest hit by the new trade tariffs announced last week by US President Donald Trump. According to sources at Moncloa, the general objective of Sánchez's trip—who will be accompanied by the Minister of Foreign Affairs, José Manuel Albares, and the Minister of Agriculture, Fisheries, and Food, Luis Planas—is to strengthen bilateral relations with both countries within the framework of the government's policies to strengthen relations with Asia and the new strategy on Asia that the Foreign Ministry is preparing for this year. Furthermore, the trip takes place in a context marked by US tariffs (which for the European Union will be twenty percent) and with the Prime Minister's own insistence that the European Union diversify and open new markets in order to reduce excessive dependencies and, therefore, vulnerabilities, and achieve strategic autonomy. Vietnam The tour begins on Wednesday in Hanoi, the first visit by a Spanish Prime Minister to Vietnam. That day, after visiting the Monument to Heroes and Martyrs and the Mausoleum of former President and anti-colonialist leader Ho Chi Minh, Sánchez will be received by Prime Minister Pham Minh Chinh; Communist Party General Secretary To Lam; President of the National Assembly Tran Thanh Man; and President Luong Cuong. Vietnam, according to the aforementioned sources, is an increasingly important player on the international scene and plays a significant role in the search for peace and stability in the South China Sea. It is also the only country in the world to have received visits from former US President Joe Biden and the presidents of China, Xi Jinping, and Russia, Vladimir Putin. Both the President of the European Commission, Ursula von der Leyen, and the President of France, Emmanuel Macron, are scheduled to visit the country in the near future. Sánchez's trip will also coincide with the 50th anniversary of Vietnam's post-war reunification. In fact, the visit begins on April 9, just before the Communist Party plenary session dedicated to the anniversary, where, among other important decisions, the foreign investment law will be revised. This aspect is very important for Spain, since, in addition to strengthening political relations (through the signing of a Memorandum of Understanding for the creation of a consultation mechanism), the other major objective of Sánchez's trip is precisely to strengthen economic and trade relations with Vietnam. Economic issues will be addressed on the second day of the trip, which will take place on Thursday in Ho Chi Minh City, the economic capital of Vietnam. During this time, Sánchez will have breakfast with the Spanish companies accompanying him and attend the Spain-Vietnam Business Economic Forum. According to the aforementioned sources, Vietnam is one of the most economically vibrant countries in Asia, with a population of 100 million, GDP growth of 6 percent (according to IMF data) that could reach 8 percent in the coming years, and significant economic dynamism thanks, in part, to its export model. The Vietnamese economy, in fact, is heavily dependent on exports to the United States, which represent 30 percent of the country's GDP. For this reason, the impact of Trump's tariffs could be devastating for Vietnam, the fourth country in the world most affected by the US president's measures (behind only Cambodia, Laos, and Madagascar). Furthermore, this is the first time the US has confronted Vietnam on trade since the end of the war. Under these circumstances, Vietnam may begin to look favorably at the possibility of strengthening its economic relations with the European Union, which has signed three agreements with the country to date: the 2016 Partnership and Cooperation Agreement, the 2020 Free Trade Agreement, and the 2022 Joint Partnership for Ecological Transition. Currently, according to the aforementioned sources from Moncloa, trade between Spain and Vietnam is highly unbalanced. Spain imports €5.2 billion from that country and exports €530 million. Although the products Spain sells have greater added value (plastics, manufactured goods, and electronic materials), the government estimates that, with a population of 100 million and a growth rate of six percent, this level of exports is insufficient for a market that Spain has failed to tap to date. For this reason, Pedro Sánchez's trip will serve to attempt to increase exports, among others, in the agricultural and food sectors, which will result in the signing of a Memorandum of Understanding on agriculture and fisheries. The Prime Minister will also promote the entry of Spanish companies into sectors where Spain has significant advantages and has already secured several concessions in recent years thanks to the Vietnamese government's infrastructure projects, such as railways (high-speed rail, urban trains, and metro), water, and renewable energy. China After his two-day visit to Vietnam, the Prime Minister will travel to China. This is Sánchez's third visit to the country in just three years, a completely normal development for the aforementioned sources at Moncloa, who recalled that former German Chancellor Angela Merkel, for example, visited China every year. The two previous visits took place in March 2023 (the 50th anniversary of diplomatic relations), during which Sánchez discussed Beijing's twelve-point proposal with President Xi Jinping to end the conflict in Ukraine, and in September 2024, during which he advocated for a negotiated solution to the tariff crisis between China and the EU and during which bilateral agreements on digital trade, services, investment, and cultural cooperation were signed. Furthermore, this visit coincides with the twentieth anniversary of the Comprehensive Strategic Partnership between China and Spain, signed in Madrid in 2005. In this context, President Xi himself has invited the King and Queen to make a state visit to his country throughout 2025. Sources at Moncloa stated that work is underway on this possible visit by Felipe VI and Queen Letizia to China. Sánchez's visit to Beijing will begin with a breakfast with around 200 Chinese investors and will continue with a meeting with President Xi Jinping and Prime Minister Li Qiang, after which he will address the media. The objective of this visit, in addition to helping strengthen relations and, if necessary, addressing the human rights situation in China, is primarily economic. Currently, China is, for the European Union, "a partner, a competitor, and a systemic rival," but Spain's objective is for Europe to prioritize China's role as a cooperation partner and seek a positive agenda with the Asian giant. On March 20, Pedro Sánchez declared during the press conference following the last European Council that his trip to China is "relevant for Europe" because it contributes to strengthening its "relations with other countries," he continued. "The world is very large, and Europe must be open to other powers and regional blocs," he added. "There are multiple opportunities that the European Union must seize in this rapidly changing international context to place itself at the center and lead the defense of a rules-based international order," Pedro Sánchez asserted. "We are actively working to reach out to the Global South and to such important powers as China," and, in this context, Spain wants to "contribute" to the rapprochement between the EU and China, he concluded. China is one of Spain's main trading partners, but there is a huge trade imbalance between the two countries in favor of the Asian country. Spain imports €45 billion from China and exports €7.4 billion, a €38 billion deficit that represents no less than 70 to 80 percent of Spain's total trade deficit. Therefore, the objective of this trip is obviously to work toward balanced economic relations based on reciprocity, mutual benefit, and trust, and to improve Spanish exports. Regarding exports, Sánchez will seek to promote Spanish medical, pharmaceutical, and cosmetic products. In the case of cosmetics, Spanish companies in the sector complained to the Moncloa two years ago about the strong non-tariff barriers (regulations) that China imposes on their products. Therefore, during this trip, an attempt will be made to sign a specific protocol for their entry into the country. Another protocol on agricultural products will also be attempted. Regarding investment, China has leveraged its competitive and technological advantages in recent years to increase investment flows in areas where Europe is less successful, such as batteries, hydrogen, electric cars, the circular economy, and nitrogen chains. During his breakfast with investors, Sánchez will seek to increase investment from Chinese companies already interested in Spain and attract new ones.

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