The World: France’s Industrial Strategy Toward China Differs Significantly from Spain’s

A Monday article published by Le Monde analyzes the similarities and differences in industrial strategies adopted by France and Spain in response to China.

Le Monde notes that both France and Spain seek to advance their respective reindustrialization efforts—particularly in clean energy and electric vehicles—by attracting Chinese investment, while also aiming to improve trade relations with China to avoid a trade war. However, their approaches diverge significantly in practice: France emphasizes safeguarding European industry, securing technology transfer, and maintaining strategic autonomy in key sectors, whereas Spain has pursued an actively open policy toward China.

Spain’s Active Influx of Chinese Investment

Le Monde reports that Spanish Prime Minister Pedro Sánchez has made multiple visits to China in recent years. Between 2023 and 2026, he visited China four times within three years. His objective is clear: to position Spain as a gateway for Chinese capital into Europe. Chinese investment in Spain reached €643 million in 2025, up from €149 million in 2024.

In Aragon, Stellantis, the automotive manufacturer, has partnered with CATL, China’s leading battery producer, on a €4.1 billion project to build a large-scale battery plant. The project is expected to create 4,000 jobs.

Near Barcelona, Chery Automobile is collaborating with a Spanish firm to invest €400 million in repurposing an old Nissan factory for vehicle production.

Additionally, Hunan Yuren Technology announced plans to invest €800 million in constructing a battery materials facility in Spain.

In the energy sector, Envision Group, a Chinese renewable technology company, plans a $1 billion investment to develop an electrolyzer production park in Spain aimed at manufacturing low-carbon hydrogen. Meanwhile, Hygreen Energy, a Chinese hydrogen equipment manufacturer, intends to establish assembly lines in Spain.

France Welcomes Chinese Investment but Prioritizes Protection of European Industry

Like Spain’s prime minister, French President Emmanuel Macron has visited China four times between 2018 and 2025. France continues to welcome investments from China in batteries, electric vehicles, and clean energy.

For example, Orano, a French nuclear fuel company, is partnering with Chinese firms on a €1.5 billion project to build two cathode material factories in Dunkirk. Renault is collaborating with Envision Group on battery production. Stellantis has formed a joint venture with China’s Zeekr and entered a partnership with Dongfeng Motor Group to produce electric vehicles using European manufacturing facilities.

Divergence Between France and Spain

Yet the two countries remain markedly different in their strategic orientation.

Spain’s approach relies on leveraging China’s strengths in battery and clean energy technologies to accelerate domestic industrial development. At the EU level, Spain has maintained a relatively moderate stance toward China.

In 2024, when the EU voted on imposing tariffs on Chinese electric vehicles, France supported the measure, while Spain abstained. Prior to the vote, Sánchez publicly called on the EU to reconsider the proposed action.

In May 2026, Spain withdrew from a joint document drafted under French leadership that aimed to raise tariff barriers against China.

Compared to Spain, France places greater emphasis on protecting domestic industries and ensuring strategic autonomy for Europe.

At the EU level, France advocates for strict requirements on local production in strategic sectors such as automobiles, steel, batteries, and solar energy. The ongoing negotiations on the Industrial Acceleration Act propose that foreign investors exceeding €100 million in key industries must ensure that at least 50% of new jobs are filled by European personnel and commit to technology transfer.

Original source: toutiao.com/article/1878885862853644/

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the editorial stance of the publication.