On the same day that the European Parliament approved new rules for the monitoring of foreign direct investments into Europe, the Spanish President of the Autonomous Region of Galicia, Alfonso Rueda Valenzuela, reiterated that the Chinese company, SAIC, is to set up a plant in his region to produce electric vehicles. He also announced that the Chinese-state owned corporation would invest “€200 million”.
The new rules will impose screening obligations on member states of foreign direct investment in critical and strategic European sectors with the screening process also coordinated with the European Commission. Transport is also included in the list of industries. French and S&D MEP, Raphaël Glucksmann, said that the law is necessary to prevent China from dominating Europe by controlling its critical infrastructure and industries.
Spain has been a staunch opponent of further European-legislative regulation and protection against Chinese trade dominance and influence with Spanish Prime Minister Pedro Sanchez seeking closer ties with China and even praising China for its “international role”. However, China’s entry into the Spanish EV industry is currently being managed by the Christian-Democrats, the Partido Popular, who control the autonomous region of Galicia and are openly seeking the opening of a new Chinese manufacturing plant in their region.
China is already indirectly producing electronic vehicles in Spain via partnership with Stellantis (previously Citroen). Stellantis has a major partnership with the Chinese EV maker Leapmotor. Stellantis bought a little over 20% of Leapmotor in 2023, and the Madrid plant may receive a new Leapmotor electric vehicle from 2028, potentially with the plant transferred to the Spanish subsidiary of the Stellantis–Leapmotor joint venture. Stellantis is also producing these electric vehicles in a plant in Vigo, also Galicia.
The establishment of SAIC in Galicia, Spain, will provide China with a major strategic-geographic position in Europe, enabling it not only to compete against European car-manufactures at home, but also to compete against their export industry. Galicia is also known for its untapped and rich mineral deposits including lithium.
SAIC Motor, Shanghai Automotive Industry Corporation, is a Chinese state-owned corporation.
You can find the EU on FDI screening here and here.
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